Tokyo Based MUFG Finance to acquire 20% stakes of HDB worth $ 1.8 Billion

Tokyo Based Non Banking Company, Mitsubishi UFG Finance to acquire 20% stakes of HDB worth $ 1.8 Billion to $ 2 Billion — subjected to going market Conditions.

As India is making its way towards becoming Vishwaguru, all the major economies of the world are investing in India. Currently, there is talk that Tokyo-based Non Banking Company Mitsubishi UFG is in the final stages of discussion to invest $2 Billion in HDB finance.

Latest Update : MUFG to invest $ 1.8 Billion

According to latest reports, MUFG an Tokyo Based company is in the last Step to acquire 20% stakes in HDB Finance. HDB is currently preparing to launch its IPO, this IPO will be India's first issue IPO which will be launched with the entities of both HDFC and HDFC life. On January 17, HDFC Bank's Chief Financial Officer Shrinivas Vaidyanathan said that HDFC has time till September 25, 2025 to list HDB Finance in HDFC LTD. And the company is in the process to launch the IPO of HBD finance.

IPO Update : HDB's Upcoming IPO

Moreover, the total valuation of HDB's Upcoming IPO will be between $ 9 Billion to $ 12 billion (₹ 75000 crore to 1 lakh crore). However this is expected valuation but the actual valuation is subjected to prevailing market Conditions. In which Tokyo based company is going to acquire 20% stake, whose valuation can be from $ 1.8 billion to $ 2 billion.The deal is being finalized at a price 5 times the book value.

HDFC Bank's unit is one of the biggest players in India in terms of Retail Financing. The Asset Under Management AMU value of the firm was ₹ 83,989 Crore on 31 December 2023, the AMU value on 31 March 2023 stood at ₹ 70,084 crore, the AMU value 31 March 2022 recorded was 61,444 

Housing Development Board HDB 

Housing Development Board HDB is a wholly owned subsidiary of HDFC Limited. HDB is a non Deposit Taking Lender Company which is mainly known for providing Vehicle Loan, loan against property and personal Loans.

One of the Biggest Investment 

This is going to be MUFG's biggest investment deal in India, before this on 3 April 2023 MUFG had invested $ 19.1 Billion ( ₹ 158.8 Crores as per Current rates) in, Directional Movement Index (DMI) Finance, a Indian Fintech providing services of Digital Marketing.  95% stakes of Housing Development Board HDB finance are held by HDFC bank or the remaining 5% stakes are held by employees under ESPOs , Employment Stock Ownership Plan.

A Valuable investment for India

This deal will be the biggest deal in the shadow banking sector in India and it is expected that this deal will prove to be very beneficial for India. Although this deal was under discussion for many years, but recently the news of its finalization is coming in a few weeks. There is full hope that the final draft of this matter will be concluded in the meeting of HDFC Ltd next week.

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