BPEA EQT and ChrysCapital to acquire 90 per cent stake in this financial services sector company which is the largest ever private equity buyout transaction!
The transaction, facilitated by Jefferies as the exclusive financial advisor, marks the largest private equity buyout in the Indian financial services sector.
Based in Mumbai, India, Housing Development Finance Corporation Limited is a prominent financial services company. It holds a significant position as a provider of housing finance in India. Additionally, the company has diversified its operations into various sectors, including banking, life and general insurance, asset management, venture capital, real estate, deposits and education loans.
HDFC Limited, HDFC Bank Limited and HDFC Credila Financial Services Limited have entered into agreements to sell a majority stake in HDFC Credila to a consortium of investors including BPEA EQT and ChrysCapital. HDFC Credila is a leading non-bank lender in the Indian education financing market. The consortium has valued HDFC Credila at INR 10,350 crore and will infuse primary proceeds of approximately INR 2,000 crore into the company. HDFC Limited will retain a stake of 9.99 per cent in HDFC Credila.
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The transaction, facilitated by Jefferies as the exclusive financial advisor, marks the largest private equity buyout in the Indian financial services sector. The entire process, from initiation to signing, was completed in just 54 days.
The company has delivered returns of 23 per cent over the 1 past year and returns of 48 per cent over the past 3 years. Additionally, the company has a ROE of 13.7 per cent.
On Tuesday, shares of the company plunged by 0.56 per cent to Rs 2,639.95.
Investors should keep a close eye on this buzzing stock.