New deal for India’s largest housing finance company

India’s largest housing finance company, HDFC, indicated today, Wednesday, that it will sell 10% of its stake in its unit (HDFC Capital) to a unit of the Abu Dhabi Investment Authority for 1.84 billion rupees ($24.09 million). .

The deal comes two weeks following HDFC and HDFC Bank, India’s largest private sector lender, rolled out merger plans to create a financial services giant to tap soaring demand for credit.

HDFC Capital was established in 2016 and manages private equity funds focusing on the real estate sector in India, as well as managing a funding platform of nearly $3 billion.

HDFC Chairman Deepak Parekh said in a statement, “The investment made by the Abu Dhabi Investment Authority will enable HDFC Capital to benefit from the global experience and expertise of the agency to give an impetus to HDF. C Capital to become a leading investment platform for global and local investors.”

The statement stated that “the Abu Dhabi Investment Authority is the main investor in the alternative investment funds managed by HDFC Capital.”

HDFC said it was “also in active discussions with major global investors to raise additional funds for the development of housing projects in India”.

HDFC shares, which have fallen 16.1% since the beginning of the year, rose 1.3% following the announcement, today, Wednesday.