HDFC Capital to buy 7.2% stake in realty start-up Loyalie for ₹1.1 crore

HDFC Capital Advisors Limited (HCAL), a wholly-owned subsidiary of the corporation, has entered into a share subscription agreement for the acquisition of 3,90,666 equity shares of Loyalie IT-Solutions Private Ltd for ₹1.1 crore. HDFC Capital Advisors Limited, a real estate private equity investment manager, is a 100 per cent subsidiary of HDFC Ltd. 

Post allotment, the deal will entitle HCAL to around 7.20 per cent of the equity share capital of Loyalie on a fully diluted basis. "Investment in Loyalie is proposed to be made by HCAL under its HART initiative programme to invest in technology companies for the benefit of the real estate ecosystem. A binding share subscription agreement in relation to such proposed investment has been entered into by HCAL," HDFC said in a stock exchanges statement.

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The shares are being acquired at ₹28.16 per equity share.

Loyalie is engaged in the business of offering marketing schemes proposed by its clients, offering loyalty or reward bonuses proposed by its clients and providing real estate brokerage services as per its clients' requirements.

Upon completion, the shareholding of HCAL in Loyalie will be as follows on a fully diluted basis, assuming no other investments or changes to the share capital of Loyalie or other corporate action in the interim, the company said.

As per the regulatory filing, Loyalie's turnover rose to ₹2.02 crore in the financial year 2020-21 from ₹1.33 crore in the previous year.

The start-up has a presence in more than 10 cities and is working with Godrej Properties, Mahindra Lifespace Developers and Shapoorji Pallonji Real Estate, among others.