Housing Development Finance Corp. has agreed to sell its non-bank lending arm, HDFC Credila Financial Services Ltd., to a consortium of Baring Private Equity Asia and ChrysCapital.
The company plans to sell 90% stake in HDFC Credila to the PE firms for Rs 9,060 crore, according to an exchange filing. The NBFC will receive additional fresh capital of Rs 2,003.61 crore as part of the proposed transaction.
The Reserve Bank of India had advised that shareholding in HDFC Credila Financial Services be brought down to 10% within two years from the effective date of the amalgamation of HDFC Ltd. with HDFC Bank Ltd., it said.
The acquirers include Kopvoorn B.V., part of the BPEA EQT group, along with Moss Investments Ltd., Defati Investments Holding B.V., and Infinity Partners, which are part of ChrysCapital group.
Post acquisition, HDFC will hold less than 10% stake in Credila.
The deal, subject to regulatory approval, is expected to close within 15 days from the completion of all conditions precedent. The Long Stop Date is March 31, 2024.
Founded by Anil and Ajay Bohora, HDFC Credila caters to the education loan segment. However, the founders exited HDFC Credila in December 2019, when HDFC bought their stake of 9.12% for Rs 395 crore, valuing HDFC Credila at nearly Rs 4,331 crore.