HDFC Bank to Fully Divest Stake in HDFC Education for ₹192 Crore by 2025
HDFC Bank announced recently that it will sell its entire 100% stake in HDFC Education and Development Services Private Limited (HDFC Edu). The decision follows an exchange filing by the bank.
Details of the Sale
The Bank’s Board of Directors has approved the divestment of its 100% stake in HDFC Edu to Vama Sundari Investments (Delhi) Private Limited, the selected bidder. The transaction will be executed in two phases: 91% of the stake will be sold by October 31, 2024, while the remaining 9% will be divested by June 30, 2025.
The all-cash deal is priced at ₹9.60 per share, covering a total of 20,000,000 shares, which amounts to ₹192 crore. This pricing was determined through a competitive bidding process, ensuring the transaction is conducted at arm’s length.
The divestment is in accordance with a Reserve Bank of India (RBI) directive issued to the Bank on April 20, 2023, which mandates full divestment from HDFC Edu within two years following the merger of e-HDFC Limited into HDFC Bank, to be completed by June 30, 2025.
Background of HDFC Edu
Founded on November 17, 2011, HDFC Edu operates in various segments, including school management, vocational training, and educational consultancy. In terms of financial performance, HDFC Edu reported total incomes of ₹10.02 crore in FY22, ₹16.18 crore in FY23, and ₹18.18 crore in FY24.
Share Performance
Shares of HDFC Bank closed at ₹1,623.05 on the day of the announcement, reflecting a decline of 2.09%.
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