HDFC rose 1.7% to Rs 1,609.45 at 11:40 IST on BSE after the company said that its wholly owned subsidiary subscribed 15% share capital in Tanzania's first housing finance company.
The announcement was made after market hours yesterday, 1 June 2017.Meanwhile, the S&P BSE Sensex was up 117.27 points or 0.38% at 31,254.86.
On the BSE, 28,533 shares were traded on the counter so far as against the average daily volumes of 2.74 lakh shares in the past one quarter. The stock had hit a high of Rs 1,611.90 in intraday trade, which is also a record high for the stock. The stock had hit a low of Rs 1,582.75 so far during the day. The stock had hit a 52-week low of Rs 1,183 on 16 June 2016.
The stock gained 2.96% over the past one month till 1 June 2017, underperforming the Sensex's 4.08% rise. The scrip had, however, outperformed the market in past one quarter, rising 12.99% as against Sensex's 7.43% rise. The scrip had also outperformed the market in past one year, gaining 27.49% as against Sensex's 16.56% rise.
The large-cap company has equity capital of Rs 317.78 crore. Face value per share is Rs 2.
HDFC said that HDFC Investments, a wholly owned subsidiary of the company subscribed 3.27 crore shares or 15% of share capital of First Housing Finance (Tanzania), Tanzania's first housing finance company. Cost of acquisition is equivalent to $1.5 million.
First Housing Finance has not yet commenced its operations. The object of the transaction is to promote greenfield housing finance company in Tanzania as HDFC in the past participated in the development of nascent housing finance markets in Asia and Africa.
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HDFC Investments has received prior approval from the Reserve Bank of India for the investment.
The shareholders of the company include three local shareholders and two international shareholders which includes HDFC Investments. Bank M Tanzania Plc, a local shareholder holds 40% and rest of the shareholders have 15% each in First Housing Finance.
HDFC will share its expertise in housing finance and will provide assistance and consultancy services in the areas of mortgage finance to First Housing Finance.
On a consolidated basis, HDFC's net profit fell 11% to Rs 3079.33 crore on 5.3% growth in total income to Rs 18040.59 crore in Q4 March 2017 over Q4 March 2016.
HDFC is India's first retail housing finance company and is currently one of the largest originators of housing loans in the country.
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