BENGALURU (Reuters) - India's top housing finance firm HDFC Ltd said on Wednesday it plans to sell a 10% stake in unit HDFC Capital to an arm of Abu Dhabi Investment Authority (ADIA) for 1.84 billion rupees ($24.09 million).
The deal comes two weeks after HDFC and HDFC Bank, the country's largest private-sector lender, floated merger plans to create a financial services behemoth to tap rising demand for credit.
Set up in 2016, HDFC Capital manages private-equity funds focused on the real estate sector in India, besides managing a nearly $3 billion funding platform.
"Investment by ADIA will enable HDFC Capital to leverage ADIA's global expertise and experience to further propel HDFC Capital towards becoming a leading investment platform for global and local investors," HDFC Chairman Deepak Parekh said in a statement.
ADIA is also the primary investor in the alternative investment funds managed by HDFC Capital, the release said.
HDFC said it is also in active discussions with leading global investors to raise additional funds for the development of affordable and mid-income housing projects in India.
HDFC shares, which have slumped 16.1% year-to-date, were up 1.3% on Wednesday following the announcement.
($1 = 76.3825 Indian rupees)
(Reporting by Nallur Sethuraman in Bengaluru; Editing by Rashmi Aich and Sherry Jacob-Phillips)