HDFC Bank to acquire upto 15% stake in India Debt Resolution Company; stock rises ~1%

29 Mar 2022 , 12:39 PM

HDFC Bank Limited announced to make an investment in India Debt Resolution Company (IRDCL) in multiple tranches. In the first tranche, the company will infuse Rs3 crore into the company, which is to be completed by March 31, 2022.

The total cost of acquisition will be a cash consideration of Rs7.5 crore, in tranches, to acquire upto 15% equity holding in IDRCL.

Post investment of the first tranche, the Bank will hold 15% of the equity share capital of IDRCL. Post investment of all tranches, the Bank will hold upto 15% of the equity share capital of the IDRCL.

Subsequent tranches of equity investment will be done as and when determined by the Board of Directors of IDRCL.

The company has received approval from the Reserve Bank of India and the Department of Economic Affairs, Ministry of Finance, Government of India.

IDRCL will carry on the business as a debt management company and do all kinds of debt management, operational management, and consultancy services concerning debt resolution for an asset reconstruction company.

HDFC Bank is currently trading at Rs1,440.55 up by Rs7.65 or 0.53% from its previous closing of Rs1,432.90 on the BSE. The scrip opened at Rs1,440 and has touched day’s high and low of Rs1,444.50 and Rs1,430 respectively.