HDFC Bank on Tuesday said it has inked an agreement to invest Rs 3 crore in the first tranche to acquire a stake in debt management company IDRCL.
HDFC Bank has signed a pact on March 28, 2022, for investment in India Debt Resolution Company Ltd (IDRCL) by way of subscription to equity securities, the bank said in a regulatory filing.
IDRCL was incorporated on September 3, 2021, to carry on the business as a debt management company and to do all kinds of debt management. It will do operational management and consultancy services in relation to debt resolution for an asset reconstruction company or investment trust or any other portfolio of securities.
"Equity investment will be done in tranches, and the first tranche of equity investment of Rs 3 crore is expected to be completed by March 31, 2022. Subsequent tranches of equity investment will be made as and when determined by the board of directors of IDRCL," the private sector lender said.The bank said it will infuse, in cash, Rs 7.50 crore in tranches to acquire up to 15 per cent equity holding in IDRCL. Shares of HDFC Bank were trading at Rs 1,442.45 apiece on BSE, up 0.67 per cent from its previous close.