Shares of private lender HDFC Bank Ltd rose nearly 2% on September 20 as a report said HDFC Credila Financial Services is planning to go public.
HDFC Credila is an education loans financier.
On September 20, ET Now reported that HDFC Credila has begun talks with bankers to discuss the plan forward to list the company’s shares. Owners EQT, ChrysCapital are working on plan to list HDFC Credila shares, the channel reported.
At 12:20 pm on September 20, shares of HDFC Bank were trading 1.85% higher at Rs 1,740 apiece.
Sovereign fund Abu Dhabi Investment Authority (ADIA) is in talks with EQT Baring Private Equity to acquire a 10% stake in education financier HDFC Credila Financial Services, Moneycontrol reported in July.
Housing Development Finance Corp. sold a majority stake in its education loan unit, Credila, to comply with regulatory restrictions imposed by the Reserve Bank of India following its merger with HDFC Bank. EQT and ChrysCapital picked up 72 percent and 18 percent stake, respectively (collectively 90 percent from HDFC Ltd), for Rs 9,553 crore in March.
In May, South Korea’s financial services major Shinhan Bank took 10 percent stake for Rs 1,500 in the education financier as part of its fresh capital raising plans through a preferential issue process. he exact capital structure of the shareholders after the fund infusion is not clear, but HDFC Bank continues to hold a stake in the lender.
Credila’s assets under management stood at Rs 27,434 crore as of December 2023 with a gross non-performing assets ratio of 0.08 percent.
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