Private Equity

PE Fund Investments

Baring Asia, ChrysCapital acquire 90% stake in HDFC Credila for Rs.9,060-Cr

Press Release   BSE Announcement  

Private Equity firms Baring Asia (via its unit Kopvoorn B V) and ChrysCapital (via its units Moss Investments, Defati Investments Holding and Infinity Partners) are to acquire a 90% stake in Mumbai-based education loans company HDFC Credila Financial Services Ltd from publicly-listed mortgage lender HDFC Limited for INR 9,060.48 crore. The deal valued HDFC Credila at a Pre‐Money Valuation of INR 10,350 crore and the investors will infuse primary proceeds of about INR 2,000 crores into the company. HDFC Limited will continue to retain a stake of 9.99% in HDFC Credila. Jefferies acted as the exclusive financial advisor and AZB & Partners acted as the legal advisor to HDFC Limited and HDFC Credila on the transaction. Wadia Ghandy & Co. acted as the legal advisor to HDFC Bank Limited. Established in 2006, HDFC Credila provides education loans to students pursuing higher education in India and overseas. The company has extended loans to over 1.24 lakh customers since inception with the current loan book at over INR 15,000 crore. The total revenue of HDFC Credila during FY23 was INR 1,352.18 crore and its Net-worth stood at INR 2,435.09 crore In April 2023, the Reserve Bank of India had advised HDFC to bring down its stake in HDFC Credila to 10% prior to its merger with HDFC Bank.