HDFC Ltd is buying out State Bank of India’s (SBI) entire 19.5% stake in its venture capital subsidiary, HVCL. 

HDFC holds 80.50% equity share capital of HVCL and the remaining shares are held by SBI.

"The Corporation on July 29, 2022 entered into a share purchase agreement (SPA) with SBI for acquisition of 97,500 equity shares of HVCL representing 19.50% of its paid-up share equity capital, at a consideration of Rs 10 per share," HDFC said in a regulatory filing.

The acquisition is expected to be completed within 14 days from the date of execution of the SPA or by August 12, 2022.

Incorporated in October 2004, HVCL is an investment manager to HDFC Property Fund. Its turnover in 2021-22 stood at Rs 1,01,592.

"Post the proposed acquisition of shares, HVCL would become a wholly-owned subsidiary of the Corporation," HDFC said.