Mumbai: Shares of HDFC on Friday dropped by over 3 percent, after global financial services giant Citigroup sold its entire stake in the Indian housing finance major for USD 1.9 billion (around Rs 9,327 crore).
HDFC shares closed for the day 3.45 percent lower at Rs 676.20 on the BSE. During the day, the scrip had dropped by 5 percent to touch a low of Rs 665.30.
Selling pressure pulled down the stock on the NSE also, where it slipped by 3.62 percent to Rs 675.90.
"The sale of Citi's remaining stake in HDFC is part of Citi's ongoing capital planning efforts ... Total proceeds from the transaction are expected to be USD 1.9 billion at the current exchange rate," Citi said in a statement on Friday.
The bank said that it sold its entire holding of 145.3 million shares, or 9.85 percent stake, in HDFC at the National Stock Exchange at Rs 657.56 per share.
This is the second stake sale by foreign funds in the mortgage leader this month alone. On February 2, Carlyle sold 1.3 percent of its stake in HDFC for about USD 270 million (Rs 1,354 crore).
According to the December quarter shareholding pattern, Citigroup Strategic Holdings Mauritius Ltd holds 129,469,705 shares or 8.78 percent stake in HDFC, while Citigroup Holding Mauritius Ltd has 15,788,100 shares or 1.07 percent stake in the company.
Fall in HDFC's shares also dragged down the bellwether index Sensex which finished the day 154.93 points lower at 17,923.57.
Other leading financial sector stocks such as ICICI Bank, HDFC Bank and SBI, too, faced selling pressure and fell by up to 3 percent.
First Published: Friday, February 24, 2012, 18:14