HDFC Bank’s share price opened at a rate lower by over 2 percent on July 27 after Aditya Puri, its Managing Director and Chief Executive Officersold his stake in the entity. NSE -0.22 % have sold 95% of his stake valued at Rs 843 crores.
According to insider trading data published by the stock exchanges on Saturday (July 25), Aditya Puri has sold 74.2 lakh shares of the bank between July 21 and Jul 24. Before this transaction, Puri held 77.96 lakh shares or 0.14% of bank equity capital.
Puri who took home Rs 18.92 crore in salary including perquisites but excluding stock options in the financial year 2019-20 sold shares worth Rs 200 crore in HDB Financial Services, the unlisted NBFC arm of the private lender in December last year. These shares were held through a family trust Vistra ITCL (India). In 2013, he transferred his shares to his family as part of the succession planning. The family’s shareholding was transferred to the Trust, Vistra ITCL.
The stock price has gained 16 percent in the last 3 months and was trading at Rs 1,091.90, down Rs 26.90, or 2.40 percent at 09:15 hours. It has touched an intraday high of Rs 1,101.40 and an intraday low of Rs 1,091.90.
In a statement, the HDFC Bank spokesperson clarified that the value of around Rs 840 crore mentioned in media reports is the value of the shares at the current price. "These shares were allotted to Puri at different times and different price points (not at par). Therefore, the net amount realized by Puri is not Rs 840 crore. The acquisition cost of shares and the tax payable on the transaction has to be accounted for as well," the spokesperson said.
The term for Aditya Puri who has been the managing director and chief executive since 1994 when the bank was set up ends on October 20, 2020. HDFC Bank board in November last year set up a search committee to identify his successor. Aditya Puri will act as an advisor to the 6-member group comprising Shyamala Gopinath, Sanjiv Sachar, M D Ranganath, Sandeep Parekh, Srikanth Nadhamuni and Keki Mistry.
Puri is credited with building India's largest and most valued private sector bank. The bank's market capitalization currently stands at Rs 6.14 lakh crore.