HDFC Bank Sells 100% Stake in HDFC Edu for ₹192 Crore to Vama Sundari

8 Oct 2024 , 04:02 PM

HDFC Bank has approved the sale of its 100% stake in HDFC Education and Development Services Pvt Ltd (HDFC Edu) to Vama Sundari Investments (Delhi) Pvt Ltd for ₹192 Crore.

The decision was part of a divestment mandate from the Reserve Bank of India (RBI), requiring HDFC Bank to fully exit from HDFC Edu within two years of its merger with e-HDFC Ltd, with a deadline of June 30, 2025.

The divestment will take place in two stages: a 91% stake will be sold by October 31, 2024, and the remaining 9% by June 30, 2025. The sale price is set at ₹9.60 per share, and the transaction will be conducted entirely in cash.

The competitive bidding process, which adhered to arm’s length principles, has been approved by HDFC Bank’s Audit Committee since Vama Sundari is a related party to HDFC Asset Management Co. Ltd.

For the fiscal year 2023-24, HDFC Edu recorded a total income of ₹18.18 Crore and total assets of ₹197.05 Crore.

HDFC Edu’s business covers various educational services, including K-12, higher education, vocational training, and supplementary education services.