Educational Lender Credila Financial Services To File Confidential IPO Papers With SEBI

India's largest private student loan provider, Credila Financial Services Ltd., is set to file its confidential draft papers for its initial public offering with the capital markets regulator.

The lender's board approved raising funds via a maiden issue at the extraordinary general meeting held on Dec. 26 through a video conference, according to an exchange filing by the company.

Further, the board also passed the adoption of the restated articles of association and the modification of its employees' stock option plan. All three resolutions were passed unanimously via a show of hands, the exchange filing said.

Formally known as HDFC Credila Financial Services, the lender was bought by a private equity consortium of BPEA EQT and ChrysCapital. In June 2023, HDFC Ltd, HDFC Bank and HDFC Credila announced that they entered into definitive agreements to sell a majority stake in HDFC Credila to the private equity consortium for Rs 9,060 crore.

The consortium of EQT and ChrysCapital holds a 90.01% stake in the private lender. As on March 31, 2024, EQT holds 72.01%, ChrysCapital Group holds 18.00% and HDFC Bank Ltd. holds 9.99% shareholding in the company

The change of control was made on RBI's direction to HDFC Bank to reduce its shareholding to less than 10% post the merger of Housing Development Finance Corp. with HDFC Bank.

Credila Financial Services is a Reserve Bank of India-registered non-banking financial company engaging in the business of providing retail education loans.

The NBFC in its September quarter posted a 79% increase in its total revenue from operation to Rs 1,164 crore, compared to the same previous last year. The net profit of the lender rose 66% in the third second quarter to Rs 226 crore on a year-on-year basis.

The education loans disbursed by the lender rose by 76% from Rs 7,992 crore in the financial year 2023 to Rs 14,089 crore in fiscal 2024, according to an investor presentation. The outstanding loan assets grew by 84% to Rs 28,187 crore in fiscal 2024 from the previous year.