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Housing Development Finance Corporation (HDFC) has said that the sale of 90 per cent stake in wholly-owned subsidiary HDFC Credila, the largest PE buyout in the Indian financial services sector, will be completed in 15 business days after receiving required approvals.
As per the June 19 agreement, HDFC will sell 13.3 crore shares of HDFC Credila to Kopvoorn B.V., Moss Investments, Defati Investments Holding B.V. and Infinity Partners for ₹9,060 crore. The transaction is subject to approvals from RBI and CCI.
Kopvoorn B.V. is part of the BPEA EQT Group whereas Moss Investments, Defati Investments Holding B.V. and Infinity Partners are part of the ChrysCapital Group. The consortium valued HDFC Credila at a pre‐money valuation of Rs 10,350 crore, and will infuse Rs 2,000 crore as primary proceeds.
“We have been following HDFC Credila for several years and we are excited to partner with its strong management team led by Arijit Sanyal. Looking ahead, BPEA EQT plans to accelerate HDFC Credila’s digital transformation and invest significantly in the company’s continued growth,” said Jimmy Mahtani, Partner and head of BPEA EQT India.
Following the transaction, HDFC Credila will cease to be a subsidiary of HDFC, whose shareholding will fall to 9.99 per cent. HDFC will have the right to nominate one non-executive nominee director on the board of HDFC Credila, and will have customary pre-emptive rights under the shareholders’ agreement.
Established in 2006, Mumbai-based HDFC Credila reported total revenue of 1,352 crore for FY23, with the net worth at ₹2,435 crore as of March 2023. It has extended loans to over 1.24 lakh customers and has a loan book of around ₹15,000 crore.
The long stop date for the sale is March 31, 2024, HDFC said, adding that the transaction was run on a “very tight timeline” with the entire process up to signing being completed in 54 days.
Jefferies was the sole financial advisor and AZB & Partners was the legal advisor to HDFC and HDFC Credila on the transaction.
“The company has built an impressive position in the education financing market in India and has continued to maintain a very high asset quality. We believe the business is well positioned to continue its strong growth momentum under its new shareholders,” said HDFC CEO Keki Mistry.
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