HDFC decides to realise value in its unlisted investments by transferring them to an SPV and then partly divested to private equity type of investors. There are 32 unlisted companies in which HDFC invested had invested in as at March 2009 at a cost of Rs3.63bn, including companies like Lafarge India, IL&FS, Chalet Hotels, etc.
While it is difficult to estimate the value of this entire book, a back-of-the envelope calculation for some of these entities indicates current market values at anywhere between 1x to 6x their cost of investment. However, we believe the true range could be between 3x to 10x cost and a reasonable central point
estimate would be 5x cost or Rs18bn Valuation for its Holdings.
