MUMBAI : Mortgage lender Housing Development Finance Corp (HDFC) on Monday said it plans to acquire the remaining 9.12% stake in its higher education financing subsidiary HDFC Credila Financial Services Private Limited (HDFC Credila) for up to ₹395 crore.
“We wish to inform you that the Corporation is proposing to acquire 1,14,70,000 equity shares of Rs. 10 each of HDFC Credila Financial Services Private Limited (HDFC Credila), a subsidiary of the Corporation, representing 9.12% of the equity share capital of HDFC Credila on a fully diluted basis, from its other promoters Ajay Bohora and Anil Bohora for a total consideration not exceeding ₹395 crore,” HDFC said in a regulatory filing on Monday.
At present, HDFC holds 90.88% of the equity share capital of HDFC Credila on a fully-diluted basis and post completion of said acquisition, HDFC Credila would become its wholly-owned subsidiary. HDFC Credila is a non-banking financial company (NBFC) and is in the business of providing loans for higher education.
For the year ended 31 March, 2019, HDFC Credila reported a turnover of ₹603.52 crore. The non-bank has branches in cities including Mumbai, Pune, Kolkata, New Delhi, Bengaluru and Chennai.
“The shares of HDFC Credila will be acquired through full cash consideration,” it said in the filing.
HDFC Credila was Incorporated in 2006 and HDFC initially acquired an equity stake in it in December 2009.
According to HDFC Credila’s website, it is India’s first dedicated education loan company and pioneered the concept of specialist education loan lender.