BPEA EQT Partners with ChrysCapital to Acquire Majority Stake in HDFC Credila for Rs. 9,060 Cr
In a recent announcement, Housing Development Finance Corporation (HDFC) revealed that BPEA EQT group, formerly known as Baring Private Equity Asia, in collaboration with ChrysCapital, has gained approval to acquire an approximately 90% stake in HDFC’s wholly owned education finance subsidiary, HDFC Credila, for a substantial amount of Rs. 9,060.5 crores.
HDFC stated that the proposed transaction is expected to conclude within 15 business days, subject to the fulfillment of all conditions precedent and regulatory approvals, or a mutually agreed-upon date. The deal will require clearance from the Reserve Bank of India (RBI) and the Competition Commission of India. The long stop date for finalizing this transaction has been set as March 31, 2024.
Furthermore, as part of the proposed transaction, the company will receive a subscription amount of up to Rs. 2,003.6 crores. The regulatory filing, made by HDFC in the late evening, disclosed this information. It is important to note that the RBI had directed HDFC to reduce its stake in HDFC Credila to 10% over the next two years and halt the onboarding of new customers as a prerequisite for the merger with HDFC Bank.
The majority stake will be acquired by Kopvoorn B.V., Moss Investments Ltd, Defati Investments Holding B.V., and Infinity Partners. Kopvoorn B.V. is a part of the BPEA EQT group, while Moss Investments Ltd, Defati Investments Holding B.V., and Infinity Partners belong to the ChrysCapital group. Following the completion of the transaction, HDFC Credila will no longer operate as a subsidiary of HDFC Ltd, and the mortgage lender’s stake in the company will be below 10% of the company’s total issued and paid-up share capital.
As of March 31, HDFC Credila reported a total revenue of Rs. 1,352.18 crore for the fiscal year 2022-2023, with a net worth of Rs. 2,435.09 crore.
About HDFC Credila:
HDFC Credila is a non-banking financial company that holds the distinction of being the first Indian lender to specialize in education loans. The company provides loans to both undergraduate and postgraduate students pursuing their studies within India or abroad. HDFC owns approximately 90% of the shares in this company.
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