HDFC to sell its subsidiary arm HDFC Edu in lieu of RBI directions

RBI has permitted the sale of 100% equity shares held by HDFC Bank Limited [HDFC Bank] in HDFC Education and Development Services Private Limited.

HDFC to sell its subsidiary arm HDFC Edu in lieu of RBI directions

According to the official exchange statement, the Private Sector Lender has confirmed that the Reserve Bank of India has permitted HDFC Bank to continue to hold the stake of erstwhile Housing Development Finance Corporation Limited (HDFC Limited) in HDFC Edu. (engaged in providing services to three education schools) for two years from the effective date of the composite scheme of amalgamation for the amalgamation of HDFC Investments Limited and HDFC Holdings Limited, wholly owned subsidiaries of HDFC Limited, with and into HDFC Limited and HDFC Limited with and into HDFC Bank.

Read Also : NSE Nifty Next 50 to be launched today

 In furtherance of the aforesaid RBI direction and after due deliberation and in the interests of maintaining transparency in the proposed divestment, HDFC Bank has decided to undertake the sale of its 100% stake in HDFC Edu. (the Proposed Transaction) using the Swiss challenge method. In this regard, HDFC Bank has on March 30, 2024, entered into a binding term sheet with an interested party and the offer contained in such term sheet shall serve as the anchor/base bid to seek counter offers from other parties interested in participating in the aforesaid Swiss challenge process. HDFC Bank shall finalize the purchaser based on the completion of the Swiss challenge process, after which such purchaser and HDFC Bank will enter into definitive documentation for the Proposed Transaction.

Read Also : DRDO develops Lightest Bullet Proof Jacket for protection against highest threat Level 6 of BIS

 Given the nature of the process that is required to be followed for the Proposed Transaction, the details as required to be disclosed as of date in terms of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Meanwhile, the lender has stated that the details of the definitive documentation for the Proposed Transaction which are required to be disclosed in light of the aforesaid regulations shall be submitted upon execution of such definitive documentation.


Read Also : Power Secretary, and CMD, PFC Parminder Chopra convened at PFC Pod during WEC in Rotterdam