A consortium of private equity firms, including BPEA EQT and ChrysCapital, has acquired a 90 per cent stake in HDFC Credila Financial Services for Rs 9,060 crore, HDFC Ltd said.
The sale of HDFC Credila, the education loan arm of the Housing Development and Finance Corporation (HDFC), comes ahead of the completion of HDFC’s merger with HDFC Bank.
In April, the RBI had asked HDFC to reduce its stake in Credila to under 10 per cent over the next two years.
“HDFC Ltd, HDFC Bank Ltd and HDFC Credila Financial Services Ltd, today announced they have entered into definitive agreements to sell a majority stake in HDFC Credila to an investor consortium of BPEA EQT and ChrysCapital,” HDFC said in a stock exchange filing on Tuesday.
The total revenue of HDFC Credila during the 2022-23 fiscal was Rs 1,352.18 crore and its net worth as on March 31, 2023, was Rs 2,435.09 crore.
The PE consortium includes Kopvoorn B.V., Moss Investments, Defati Investments Holding B.V. and Infinity Partners.
HDFC AMC shares
UK-based Abrdn Investment Management, a promoter of HDFC Asset Management Company (AMC), on Tuesday divested its entire 10.20 per cent stake in thefirm for Rs 4,079 crorethrough open market transactions. Abrdn offloaded the shares of HDFC AMC in 22 tranches.
SBI Mutual Fund, Aditya Birla Sun Life MF, ICICI Pru Life, BNP Paribas Arbitrage, Societe Generale, SmallCap World Fund Inc, Kuwait Investment Authority and BofA Securities Europe SA, among other buyers, bought the shares of HDFC AMC.
Abrdn Investment Management sold a total of 2.1 crore shares amounting to 10.20 per cent in HDFC AMC.
CCI approval
Competition watchdog CCI on Tuesday granted its approval to mortgage lender HDFC to acquire a certain stake in HDFC Life Insurance Company and HDFC ERGO General Insurance Company Ltd.
These approvals will help pave the way for the merger of HDFC into HDFC Bank, expected to be finalised by the third quarter of this fiscal.
In April, the RBI also allowed HDFC Bank or HDFC to increase its shareholding in HDFC Life and HDFC ERGO General Insurance Company to over 50 per cent prior to the effective date of the merger.
