HDFC Bank Limited has announced that its Board of Directors has approved the sale of 100% of its stake in HDFC Education and Development Services Private Limited (HDFC Edu). The sale is part of the bank’s compliance with the Reserve Bank of India (RBI) directive, which required HDFC Bank to divest its full stake in HDFC Edu within two years from the effective date of the merger of e-HDFC Limited into HDFC Bank.
The stake in HDFC Edu will be sold to Vama Sundari Investments (Delhi) Private Limited, which emerged as the successful bidder through a bid process. The sale will involve a transaction value of Rs. 192 crore at a price of Rs. 9.60 per share for 20 crore shares.
Divestment Schedule
- HDFC Bank will divest 91% of its stake by October 31, 2024.
- The remaining 9% stake will be divested no later than June 30, 2025.
Upon completion of the sale of the remaining 9%, HDFC Edu will no longer be a subsidiary of HDFC Bank.
Financial Overview of HDFC Edu
- HDFC Edu is engaged in education-related services, including school management, vocational training, and educational consultancy.
- Total income for the financial year ended March 31, 2024, was Rs. 18.18 crore.
- Total assets of the entity stood at Rs. 197.05 crore as of March 31, 2024.
This divestment aligns with the RBI’s requirement for the full divestment of non-core entities, following HDFC Bank’s merger activities.