HDFC Bank has signed an agreement to acquire 15 per cent stake in India Debt Resolution Company Limited (IDRCL) for ₹7.5 crore.
According to a stock exchange filing by the bank on Tuesday, the stake will be acquired through subscription to equity securities.
It further said that equity investment will be done in tranches and the first tranche (₹3 crore) is expected to be completed by March 31, 2022.
The subsequent tranches of equity investment will be made as and when determined by the board of directors of IDRCL, it said.
The bank has already received approval for the deal from the RBI and Department of Economic Affairs in the Finance Ministry.
IDRCL has been incorporated to carry on the business as a debt management company and to do all kinds of debt management, operational management and consultancy services in relation to debt resolution for an asset reconstruction company or investment trust or any other portfolio of securities.
ICICI Bank had on Monday announced that it signed a similar agreement to acquire 15 per cent stake in IDRCL.