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Carlyle likely to offload 3.7% residual stake in HDFC

US alternative asset manager the Carlyle is planning to dispose of its remaining 3.71% stake in India’s housing finance major HDFC in a proposed deal valued at INR45bn ($850m).

Sources close to the matter said the deal is likely to be executed through the accelerated book building method and will be carried out on one of the two stock exchanges, according to media reports.

The company has authorized Citigroup’s unit in India to sell the entire residual stake at a price of INR760-781 ($14.74- 15.16) per share, and also to offer the shares at a discount of 1-4% based on 4 October’s closing price.

With the sale of the aforesaid stake in HDFC, Carlyle will exit from the housing financial firm after investing and gaining a total profit of about $450m over the past five years.

The private equity fund manages the stake, which represents 57 million shares, through its CMP Asia arm that acquired up to 5.63% in HDFC for $650m in May 2007.

Mumbai based HDFC is a diversified financial firm, which trades in banking, mortgage and insurance sector and offers a number of financial products to individuals and institutions.

As of 30 June 2012, Carlyle had $156bn of assets under management in 99 funds and 63 fund of fund vehicles, and the firm invests in Africa, Asia, Australia, Europe, the Middle East, North America and South America.