HDFC Credila selects 5 banks for blockbuster ₹5,000 crore IPO
HDFC Credila Financial Services, India's leading education loan provider, has selected five investment banks to guide its initial public offering (IPO) in 2025. The company has chosen Jefferies, Citi, Axis Capital, IIFL Capital, and BofA Securities as advisors for this significant financial move. This decision was confirmed by multiple sources familiar with the matter who spoke to Moneycontrol.
Aim to raise ₹5,000 crore through IPO
The extent of funds HDFC Credila aims to raise through its IPO could surpass ₹5,000 crore, depending on the level of stake dilution by investors, according to the information provided by a source familiar with the company's listing plans. The exact amount will be determined closer to the launch date in 2025, and is subject to market conditions at that time.
Ownership and stake distribution
In June 2023, a consortium comprising Swedish investment giant EQT and Indian private equity firm ChrysCapital acquired HDFC Credila from the HDFC Group. Currently, the majority stake in the education loan provider is held by this EQT-ChrysCapital alliance. Minority stakes are held by HDFC Bank and South Korea's Shinhan Bank, with the latter acquiring an 11% share in April 2024.
Financial performance and loan disbursement
HDFC Credila reported a total income of ₹2,771.04 crore and a post-tax profit of ₹528.84 crore, for the fiscal year (FY) ending March 31, 2024. The company's annual report for 2023-2024 revealed a significant increase in education loans disbursed, rising by 76% from ₹7,992 crore in FY23 to ₹14,089 crore in FY24. The outstanding loan assets also saw substantial growth, surging by 84% from ₹15,298 crore in FY23 to ₹28,187 crore in FY24.
