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HDFC Bank to sell 90% in Credila
June 21, 2023
Housing Development Finance Corp. (HDFC) on Monday said it will sell a 90% stake in education loan subsidiary HDFC Credila Financial Services to Baring Private Equity Asia (BPEA) EQT group and the ChrysCapital group for ₹9,060.5 crore.
The mortgage lender said the proposed transaction will close within 15 business days from the completion of all conditions precedent, including receipt of regulatory approvals or a date mutually agreed between the parties. The deal would require approvals from the Reserve Bank of India (RBI) and the Competition Commission of India, it said, adding that the long stop date for this transaction is 31 March 2024.
Additionally, HDFC Credila will receive a subscription amount of up to ₹2,003.6 crore as part of the proposed transaction, HDFC said in a late evening regulatory filing. The mortgage lender was asked to pare its stake in HDFC Credila to 10% over the next two years, and stop onboarding new customers, as per an RBI directive for its merger with HDFC Bank.
The stake will be acquired by Kopvoorn B.V, Moss Investments Ltd, Defati Investments Holding B.V and Infinity Partners. While Kopvoorn B.V. is part of the BPEA EQT group, Moss Investments Ltd, Defati Investments Holding B.V. and Infinity Partners are part of the ChrysCapital group. After the transaction HDFC Credila no longer be a subsidiary of the HDFC Ltd, and the mortgage lender’s stake in HDFC Credila will be less than 10% of Credila’s total issued and paid-up share capital.
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