Private Equity Players Top Contenders To Acquire HDFC Credila

A consortium made up of BPEA EQT, formerly known as Baring PE Asia, along with Chrys Capital and Faering Capital, is the top suitor to buy a majority stake in education loan provider HDFC Credila.

What Happened? The consortium is likely the top contender to buy a majority stake in the education loan company and is looking to acquire a combined 90% stake in the business, Moneycontrol reported, citing sources.

While one source told the publication the deal could be signed in the next few weeks, another said that HDFC was looking for a valuation of around ₹10,000 crore for Credila, which would make it one of the biggest deals in India.

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The Reserve Bank of India (RBI) has instructed HDFC to cut down its stake in the education loan division to 10% within two years as a requirement for the much-awaited HDFC-HDFC Bank merger.

HDFC CEO Keki Mistry said in its Q4 investors’ call that the firm was looking to slash its in stake in the education loan provider to 10%, and a “variety of people” were making bids.

As per reports, HDFC Credila has made out loans to 1.2 lakh customers. In FY23, its gross loan assets grew 73% from a year ago to ₹15,298 crore, and its profit after tax stood at ₹276 crore, with a net interest margin of 4%.

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Posted In: EquitiesNewsAsset SalesMarketsBaring PE AsiaChrys CapitalFaering CapitalHDFCHDFC BankHDFC Credila