HDFC Bank has raised equity shares in SGRL
As of date, HDFC Life Insurance Company Limited is a shareholder of SGRL and the Equity Raise would require RBI approval. The time for completion of the acquisition is 7 months (on an indicative basis).
The largest private lender HDFC Bank has committed to invest around Rs 17 crore for the equity raise in the Housing Finance Company of Sewa Grih Rin Ltd.
The exchange filing made by the company is, that HDFC Bank Limited, currently holding an equity stake of 6.48% on a fully diluted basis in Sewa Grih Rin Ltd (“SGRL”), has signed definitive documents, according to which, the Bank has, subject to fulfillment of certain conditions, committed to investing an amount of Rs. 17,32,76,695, for an equity stake of 1.81% (on a fully diluted basis) in SGRL, as a part of a larger issuance of equity shares (“Equity Raise”) by SGRL. On consummation of the Equity Raise, which is subject to certain conditions, including regulatory approval (which is expected in 7 months), HDFC Bank Limited’s equity stake would be diluted to 3.51% (on a fully diluted basis) on the expanded capital base of SGRL.
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The financial structure of Sewa Grih Rin Limited in the financial year ended March 31, 2023, is a Total income of Rs. 94.22 crore with Total assets of Rs. 774.53 crore.
A total cash amount of Rs. 17 crore are required for partly paid-up equity shares which are to be fully paid up over two tranches. The Percentage of shareholding acquired Equity stake of 1.81% (on a fully diluted basis).
As of this date, HDFC Life Insurance Company Limited is a shareholder of SGRL and the Equity Raise would require RBI approval. The time for completion of the acquisition is 7 months (on an indicative basis).
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Sewa Grih Rin Limited is a Housing Finance Company registered under Section 29A of the National housing Bank Act, 1987 vide Registration Certificate 01.0118.15 dated January 24, 2015. SGRL is an affordable housing finance company with a special focus on advancing the property rights of women in the informal sector.
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