HDFC Bank to invest Rs 7.50 cr, pick 15% in IDRCL
HDFC Bank said that the equity investment will be done in tranches, the first of which for Rs 3 crore is expected to be complete by March 31.
- Mar 29, 2022,
- Updated Mar 29, 2022 9:32 AM IST
HDFC Bank, on Tuesday, said that it will pick 15 per cent equity holding in India Debt Resolution Company Limited (IDRCL) for Rs 7.50 crore. The total consideration will be paid in tranches, the company said.
HDFC Bank said that the equity investment will be done in tranches, the first of which for Rs 3 crore is expected to be complete by March 31. “Subsequent tranches of equity investment will be made as and when determined by the Board of Directors of IDRCL,” it said.
The lender said that it has received approval from the Reserve Bank of India and the Department of Economic Affairs, Ministry of Finance, for the deal.
The bank highlighted that HDFC Bank and its subsidiaries may have business dealings with IDRCL in the ordinary course of business.
“Post investment of the first tranche, the Bank will hold 15 per cent of the equity share capital of IDRCL. Post investment of all tranches, the Bank will hold upto 15 per cent of the equity share capital of the IDRCL,” it added.
Incorporated on September 3, 2021, IDRCL was created with an objective to function as a debt management company for all kinds of “debt management, operational management and consultancy services in relation to debt resolution for an asset reconstruction company or investment trust or any other portfolio of securities”.
Also read: HDFC Bank joins other lenders; acquires 7.84% stake in ONDC
HDFC Bank, on Tuesday, said that it will pick 15 per cent equity holding in India Debt Resolution Company Limited (IDRCL) for Rs 7.50 crore. The total consideration will be paid in tranches, the company said.
HDFC Bank said that the equity investment will be done in tranches, the first of which for Rs 3 crore is expected to be complete by March 31. “Subsequent tranches of equity investment will be made as and when determined by the Board of Directors of IDRCL,” it said.
The lender said that it has received approval from the Reserve Bank of India and the Department of Economic Affairs, Ministry of Finance, for the deal.
The bank highlighted that HDFC Bank and its subsidiaries may have business dealings with IDRCL in the ordinary course of business.
“Post investment of the first tranche, the Bank will hold 15 per cent of the equity share capital of IDRCL. Post investment of all tranches, the Bank will hold upto 15 per cent of the equity share capital of the IDRCL,” it added.
Incorporated on September 3, 2021, IDRCL was created with an objective to function as a debt management company for all kinds of “debt management, operational management and consultancy services in relation to debt resolution for an asset reconstruction company or investment trust or any other portfolio of securities”.
Also read: HDFC Bank joins other lenders; acquires 7.84% stake in ONDC