HDFC Managing Director Significantly Increases His Stake in the Company

Keki Mistry, the Managing Director of HDFC (HDB), has increased his stake in the company by 2.6 times: he bought 85,000 shares to add to his earlier 32,000 shares. HDFC's stock price is currently around Rs 1580, so his purchase amounted to Rs 13.4 crore (around $3mn).

For an Indian Managing Director, that is a sizeable investment. What is unclear is whether this is part of his compensation from the company, or bought from his own money. Ideally, it would be from his own money, as an ESOP kind of a grant need not appear on a stock exchange's announcement list.

If the Managing Director is putting so much of his own money into HDFC, then that is a great endorsement of this stock.

HDB 1-yr chart

Comments

[sandeep cha...:]

A quick note - Keki Mistry is the MD of HDFC, while the ADR chart which you have shown is for HDB - HDFC Bank. These are two different securities and companies.

2007 Jan 15 11:33 PM

[Abhinav Sharma:]

according to National Stock Exchange announcements, this 85k shares are from an ESOP plan!

2007 Jan 16 07:17 AM