In a ₹9,060 Cr deal, BPEA EQT to acquire majority stake in HDFC Credila

BPEA EQT
BPEA EQT

Housing Development Finance Corporation (HDFC) announced that BPEA EQT group (formerly Baring Private Equity Asia), in collaboration with ChrysCapital, has been given the go-ahead to purchase about 90% of HDFC Credila Financial Services Ltd (HDFC Credila), a wholly owned education financial subsidiary of HDFC, for a sum of $9,060.5 crore.

The largest mortgage lender in the nation announced in a regulatory filing late Monday that Kopvoorn B.V., Moss Investments Limited, Defati Investments Holding B.V., and Infinity Partners will purchase roughly 132.9 million shares of HDFC Credila.

A member of the BPEA EQT group is Kopvoorn B.V. The ChrysCapital group includes Moss Investments Limited, Defati Investments Holding B.V., and Infinity Partners.

According to the document, the Investment Agreement was signed on June 19, 2023.

HDFC said it “has executed definitive documents on June 19, 2023 for proposed disinvestment/ sale of approximately 13,29,49,207 equity shares of HDFC Credila representing approximately 90% of HDFC Credila’s total issued and paid-up share capital as on date, to the Acquirers…, subject to regulatory approvals and dispensations.”

The Reserve Bank of India (RBI), which oversees both HDFC and HDFC Credila, and monopoly watchdog Competition Commission of India (CCI) must both approve the merger.

The proposed transaction will close on the date that is 15 business days after all prerequisite conditions have been met, including receiving regulatory approvals, or on another date that the parties may mutually agree upon. The application also stated that the Long Stop Date is March 31, 2024.

In accordance with the proposed transaction, the Corporation’s ownership of HDFC Credila will decrease to less than 10% of the company’s total issued and paid-up share capital, and HDFC Credila will no longer be a subsidiary of the Corporation.

HDFC currently owns all of HDFC Credila.

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