MUMBAI: Credila Financial Services, formerly HDFC Credila Financial Services has filed the pre-filed draft papers with the markets regulator SEBI for an Initial Public Offering through which it plans to raise Rs 5,000 crore.
Credila Financial is the largest education loan provider in the country and was personally mentored by Dipak Parekh since 2006, the ex-chairman of the erstwhile mortgage lender HDFC.
The mortgage major was forced to sell it in the run-up to its reverse merger with its banking arm HDFC Bank which came into play from last July.
Since its founding in 2006, the company has grown to become the largest player in the $200-billion worth education loan market, offering both secured and unsecured education loans.
Currently, 21 percent of its books are secured and the rest 79 percent is unsecured. The shareholders of the city-based non-deposit-taking non-bank at an extraordinary general meeting held on December 26 unanimously passed a special resolution to or raise capital through an IPO, which will be a mix of fresh issue and offer for sale.
Under the deal, which was a precondition for the reverse merger to go through, HDFC sold 90 percent stake Credila to Baring Private Equity Asia (BPEA)-EQT Group and the domestic private equity player ChrysCapital for Rs 9,060.5 crore.
The RBI asked HDFC Bank not to hold more than 10 percent in the company post-merger. The $40-billion HDFC-HDFC Bank merger is the largest in the history of India Inc.
Under the deal HDFC Credila had also received a subscription amount of up to Rs 2,003.6 crore.
The HDFC’s stake was acquired by Kopvoorn BV, Moss Investments, Defati Investments Holding and Infinity Partners. While Kopvoorn is part of the BPEA EQT group, Moss Investments, Defati Investments Holdings and Infinity are part of the ChrysCapital group.
As of march 2024, the Swedish EQT group owns 72.01 percent in the company while ChrysCapital holds 18 percent and HDFC Bank owns 9.99 percent in the company. RBI had mandated HDFC Bank not to hold more than 10 percent in the entity after the merger. The buyers had valued the company at a pre-money valuation of Rs 10,350 crore.
Among these shareholders, who will sell and how much is not immediately known.
Though the DRHP does not mention the amount it is planning to raise, sources told TNIE that the company is looking at mopping up at least Rs 5,000 crore, which may hit the market either in March or April.
“We have filed the pre-filed draft red herring prospectus with the Securities and Exchange Board for the proposed initial public offering of its equity shares bearing face value of Rs 10 each on the mainboard of stock exchanges,” Credila said in a notice published in newspapers.
Its education loan book increased 76 per cent to Rs 14,089 crore in FYY 24, up from Rs 7,992 crore in the previous year. It disbursed loans to 53,603 students in fiscal 2024, compared to 33,036 students in the previous fiscal year.
Its total loan book grew 84 percent to Rs 28,187 crore in…
Read More: Credila Financial Services files for Rs 5,000 cr IPO
