HDFC Limited has signed an agreement for the proposed sale of approximately 132,949,207 equity shares of HDFC Credila, representing approximately 90% of HDFC Credila’s total issued and paid-up share capital, HDFC Bank announced on Monday. The agreement was struck with a consortium of private equity firms BPEA EQT and ChrysCapital for around Rs 9,060 crore.
The proposed transaction is subject to regulatory approvals and dispensations from 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% of HDFC Credila’s total issued and paid-up share capital,” the bank stated.
The largest private sector lender stated that it had made certain queries to the Reserve Bank of India (RBI), and that the central bank has provided some clarifications to HDFC Bank in a letter dated April 20, 2023.
“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 reduced to 10% within two years of the Scheme’s effective date,” the bank said.
Under the provisions of the agreement, HDFC will have the opportunity to nominate one non-executive nominee director to the board of directors of HDFC Credila on the parameters agreed upon in the Shareholders’ Agreement.