FCC

CCI greenlights 90% HDFC Credila stake purchase

2023-08-10

The Competition Commission of India (CCI) has given its green light to the intended acquisition of a 90% equity stake in HDFC Credila Financial Services by a consortium of private equity firms including BPEA EQT and ChrysCapital. The purchasing entities consist of Kopvoorn, a part of the BPEA EQT group, along with three ChrysCapital-affiliated entities: Moss Investments, Infinity Partners, and Defati Investments Holding.

The proposed transaction involves the consortium acquiring approximately 90% of the total shareholding and corresponding voting rights of HDFC Credila, as stated in an official press release.

HDFC Credila Financial Services (HDFC Credila) operates as a registered non-banking financial company (NBFC) under the purview of the Reserve Bank of India. Its primary business revolves around providing retail education loans.

The CCI has officially granted its approval for the aforementioned deal.

Back in June, HDFC Ltd, HDFC Bank, and HDFC Credila jointly revealed their definitive agreements to divest a majority ownership stake in HDFC Credila to the private equity consortium consisting of BPEA EQT and ChrysCapital, at a total value of Rs 90.06 billion.

It's worth noting that deals surpassing a certain predefined threshold necessitate regulatory clearance. The regulatory body oversees and prevents unfair business practices within the market landscape.