HDFC signs pact for sale of 90% stake in HDFC Credila for Rs 9,060 crore

HDFC Limited has signed a pact for the proposed sale of approximately 132,949,207 equity shares of HDFC Credila representing approximately 90 per cent of HDFC Credila's total issued and paid-up share capital, HDFC Bank said on Monday. The deal has been signed with a consortium of private equity firms BPEA EQT and ChrysCapital for around Rs 9,060 crore.

The proposed deal is subject to regulatory approvals and dispensations including the RBI and the Competition Commission of India. "Pursuant to the proposed transaction, HDFC Credila will cease to be a subsidiary of HDFC Limited, and HDFC Limited's shareholding in HDFC Credila will be less than 10 per cent of HDFC Credila’s total issued and paid-up share capital," the bank said.

The largest private sector lender said that it had made certain requests to the Reserve Bank of India (RBI) and the central bank in its letter dated April 20, 2023, had provided certain clarifications to HDFC Bank.

"Under the said letter, RBI had inter alia advised that shareholding in HDFC Credila Financial Services Limited, a wholly-owned subsidiary of HDFC Limited, be brought down to 10 per cent within two years from the effective date of the Scheme," the bank said.

Under the deal terms, HDFC shall have the right to nominate one non-executive nominee director on the board of HDFC Credila on terms as agreed under the Shareholders’ Agreement.