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Housing Development Finance Corporation (HDFC) on Friday entered into a share purchase agreement for sale of 44,12,000 equity shares of ₹10 each in HDFC ERGO General Insurance for a cash consideration of ₹236.48 crore to ERGO International AG.
HDFC, in a regulatory filing, said the share sale is in accordance with the direction of the Reserve Bank of India (RBI) to reduce its shareholding in HDFC ERGO to 50 per cent or below.
The share sale at ₹536 per equity share, represents 0.62 per cent of the issued and paid-up share capital of HDFC ERGO. ERGO International AG is the foreign promoter of the general insurer.
HDFC, in a stock exchange filing, said the sale/disposal of the shares is expected to be completed by May 12, 2021.
Subsequent to the above sale, HDFC ERGO would cease to be a subsidiary company of HDFC under the provisions of the Companies Act, 2013, the company said.
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