HDFC to sell 90% stake in education fin arm to BPEA, ChrysCapital in $1.11 bln deal

Housing Development Finance

20/06/2023 03:23

MUMBAI, June 20 (Reuters) - Indian mortgage lender
Housing Development Finance Corporation  HDFC.NS  said it had
agreed to sell an about 90% stake in its education finance
arm to a consortium of BPEA EQT and ChrysCapital for 90.60
billion rupees ($1.11 billion).
    In what would be the country's largest-ever private equity
buyout in the financial services sector, the consortium valued
HDFC Credila Financial Services at a pre‐money valuation of
103.50 billion rupees and will infuse primary proceeds of 20
billion rupees into the company, HDFC said in a release late
Monday.
    The announcement comes ahead of HDFC's $40 billion merger
with HDFC Bank that is proposed to be completed next month. 
    The Reserve Bank of India had asked HDFC to reduce
shareholding in HDFC Credila to 10% within two years of the
effective date of the merger.
    Post the stake sale, HDFC will have a stake of 9.99% in HDFC
Credila.
    Jefferies acted as the exclusive financial advisor to HDFC
and HDFC Credila on the transaction.
    The transaction is subject to regulatory approvals from the
RBI and the Competition Commission of India, HDFC said. 
    The proposed transaction will be completed within 15
business days from the completion of all conditions precedent,
including receipt of regulatory approvals, it added.
    

($1 = 81.9480 Indian rupees)


($1 = 81.9850 Indian rupees)

 (Reporting by Siddhi Nayak)
 ((Siddhi.Nayak@thomsonreuters.com; +91 22 6921 7848;))