HDFC Ltd has made an announcement that it is going to sell off its subsidiaries HDFC Realty, HDFC Developers to Quikr India.
This will be an all-stock deal between HDFC and Quikr that will give the financial services conglomerate a stake in the online classified platform now valued at over Rs 10,000 crore.
As per the reports, HDFC will get over a 3% stake in Quikr India in lieu of the sale of its stake in the two subsidiaries for Rs 357 crore.
HDFC added that it has approved the sale of 100 percent of the equity share capital of HDFC Developers Ltd and HDFC Realty Ltd, its wholly-owned subsidiary companies to Quikr India Pvt Ltd at a total consideration of Rs 101.99 crore and Rs 254.98 crore, respectively.
The deal, which values Quikr India at Rs 10,385 crore, is expected to be concluded in this fiscal year.
HDFC Developers contributed Rs 6.23 crore in 2016-17 to the HDFC’s turnover, representing 0.01 percent of the total consolidated turnover of the corporation. HDFC Realty contributed Rs 35.25 crore in last fiscal to HDFC’s turnover, representing 0.06 percent of the consolidated turnover.
In a statement, the company said that it has also acquired an equity stake in Quikr India Pvt Ltd (Quikr India).
HDFC Developers runs the HDFC RED platform which is an online real estate classifieds platform with 7,000 project listings on its platform. It generates traffic of over 80,000 unique visitors per month.
“Post integration of HDFC Realty and RED, Quikr will become India’s leading online-to-offline real estate platform, and offer consumers end-to-end home buying services,” the company said.
Renu Sud Karnad, MD of HDFC said in a statement, “We are happy to associate with Quikr. The future of real estate is digital and Quikr has built a robust technology platform for consumers with products for developers and brokers who stand to benefit in the post-RERA regime.”
She further added, “We hope to derive value from Quikr’s diversified customer base while offering our strengths in the real estate sector.”
Pranay Chulet, Founder and CEO, Quikr stated in a statement, “The partnership with HDFC has come at the most opportune time when the Indian real estate industry is undergoing a fundamental transformation, creating great opportunities for those who want to bring new, innovative solutions for all industry stakeholders.”