HDFC shares fall by 3.3% as the People’s Bank of China increases their stake to 1.1%

0
27

Headquarters of the People's Bank of China (PBOC). (Reuters)

Headquarters of the People’s Bank of China (PBOC). (Reuters)

HDFC vice chairman and CEO, Keki Mistry, said PBOC was an existing shareholder and held 0.8% of the company through March 2019.

  • Trending desk New Delhi
  • Last update: April 13, 2020, 10:43 am

Housing Development Finance Corp Ltd (HDFC) shares lost up to 3.3% on Monday in early trading after reports revealed that the People’s Bank of China (PBOC) has increased its stake in the mortgage bank.

At 10:06 a.m., HDFC stocks were trading at Rs 1,656.15, down 2.8% after hitting the daily low of Rs 1,646.55 at BSE.

According to exchange data, the Volksbank of China may have bought 1.75 crore shares or 1.01% of the shares in HDFC in the March quarter. In particular, the purchase of the shares comes at a time when the HDFC shares have lost over 31% since the beginning of the year.

HDFC Vice Chairman and CEO, Keki Mistry, said PBOC is an existing shareholder and has owned 0.8% of the company since March 2019. He added that the disclosure has now been made since the proportion has reached the 1% regulatory threshold.

“You have accumulated the shares over a year and are now holding 1.1%,” said Mistry.

In the meantime, HDFC Chairman Deepak Parekh told Moneycontrol that the transaction was not intended for the Chinese central bank itself, but on behalf of the Chinese state fund SAFE.

“There is no problem here. You (PBOC) have been buying shares for two years, ”said Parekh. “But they buy for sovereign wealth funds. The front is the Volksbank because it must have foreign exchange. They have bought more since the price went down, ”said Parekh.

He said that the Saudi Arabian Monetary Authority (SAMA) had also taken a 0.7% stake in HDFC on behalf of the Saudi State Fund, but that the name of SAMA was not reflected in the names of the major shareholders as the stake in the Business continues to exist less than 1%.

Source