Companies & Sectors
HSBC likely to sell stake in Axis, Yes Bank

HSBC has 4.75% stake (1.9 crore shares) in Axis Bank, through HSBC IRIS Investments Mauritius. It also has 4.76% stake in Yes Bank and holds 1.67 crore shares in it through the Mauritius-based entity

New Delhi: UK-based HSBC is likely to sell stake in private sector lenders Axis Bank and Yes Bank as part of its global strategy and is understood to have appointed merchant bankers for the deals, reports PTI.
To be done through block deals by HSBC Securities, the two stake-sales could be worth about Rs2,430 crore at the prevailing market price of the India-based lenders.
HSBC has 4.75% stake amounting to 1.9 crore shares in Axis Bank through HSBC IRIS Investments Mauritius, as per the latest BSE filings available.
It also has 4.76% stake in Yes Bank and holds 1.67 crore shares in it through the Mauritius-based entity.
The global banking major is in the process of offloading stake in Axis and Yes Bank and has already appointed merchant bankers, according to sources.
When contacted, HSBC declined to comment on the issue.
In December 2003, HSBC had bought about 20% in Axis Bank (then UTI Bank) from private equity major CDC. The British bank bought the stake in Yes Bank in 2008.
In April, the Netherlands-based Rabobank sold about 3.4% stake in Yes Bank for about Rs 453 crore. Rabobank sold 1.26 crore shares for Rs357.03 apiece through an open market transactions.
Of this, Bajaj Allianz Life insurance picked up 25.2 lakh shares, while Citigroup Global Markets Mauritius picked up 22 lakh shares at Rs357 per unit, according to the BSE data.
Rabobank owned about 1.67 crore shares or 4.73% stake in Yes Bank at the end of 31 March 2012.
In 2010, Rabobank had sold about 11% in Yes Bank and had thus reduced its stake in Yes Bank from around 15.9% to 4.9%. Rabobank has been reducing its stake in Yes Bank as it plans to enter banking space on its own in the country.
Earlier this year, Citigroup sold its stake in housing finance major HDFC for nearly Rs10,000 crore ($1.9 billion), while US private equity major Warburg Pincus offloaded its stake in Kotak Mahindra Bank for about Rs1,350 crore ($274 million).


Sequoia Capital invests Rs305 crore in Just Dial

Just Dial’s service is delivered across the web, phone and mobile internet

Mumbai: Just Dial, one of India's leading local search engine, announced that Sequoia Capital has made an investment of Rs305 crore in the company. Just Dial is one of the first companies to offer local search services in India. It aims to provide fast, free, reliable and comprehensive information to its users and has provided consumers with an efficient interface for accessing local business information across India. Just Dial's service is delivered across the web, phone and mobile internet. 
Just Dial's unique local search service leverages a database of approximately 7.8 million merchant listings across various Indian cities and towns, with over 12 million merchant ratings and reviews. The company is one of the leading brands in India's local search services and has approximately 171,000 campaigns by SME advertisers who use its platform to market themselves directly to consumers who may have an interest in their products or services. Mobile Internet is the fastest growing channel for users to access Just Dial's services and now accounts for approximately 10% of Just Dial's total searches. 
This is Sequoia Capital's third investment into Just Dial. This round of funding will help drive marketing, technology investments and assist Just Dial in increasing service levels to consumers and advertisers.
Shailendra Singh, managing director, Sequoia Capital said, "We believe Just Dial enjoys an unassailable market position in local search, developed through many years of fantastic execution. Our investment reflects our strong conviction in the management's ability to continue to delight consumers and serve their 170,000+ customer campaigns as the most efficient source of lead generation for Indian businesses."
VSS Mani, CEO & managing director, Just Dial said: "Sequoia Capital has been a great partner for us since they came on board in 2009 and with this investment the partnership has graduated to a new level. We welcome this additional investment by Sequoia as it meets our purpose of having adequate cash to meet our short, medium and long term strategic objectives."
Just Dial will also make changes to its proposed initial public offering consequent to this investment.


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