HDFC pares 90% stake in HDFC Credila for Rs 9,060 crore

20 Jun 2023 , 10:22 AM

HDFC Limited, HDFC Bank Limited, and HDFC Credila Financial Services Limited (HDFC Credila) have announced plans to sell a majority stake in the company.

The stake will be sold to an investor consortium of BPEA EQT and ChrysCapital. HDFC Credila is among the largest non-bank lenders in the Indian education financing market.

According to the agreement, HDFC Credila has a pre-money valuation of Rs 10,350 crore and will invest Rs 2,000 crore in the company in the initial round. HDFC Limited will continue to own 9.99% of HDFC Credila.

Jefferies served as the transaction’s sole financial advisor to HDFC Limited and HDFC Credila. The transaction is the largest private equity buyout in Indian financial services history. The transaction was completed within a stringent timeline, being the entire process up to signing completed in just 54 days.

HDFC Credila, headquartered in Mumbai, was founded in 2006 and is one of India’s leading nonbank lenders in the education finance space. The NBFC lends money to students pursuing higher education in India and abroad. Since its inception, the company has extended loans to over 1.24 lakh customers, with a current loan book of over Rs 15,000 crore.