Credila Fin Serv files IPO papers with SEBI

Credila Financial Services Limited, an education loan specialist formerly HDFC Credila Financial Services, has filed a Draft Red Herring Prospectus (DRHP) with the market regulator, SEBI, and the exchanges. The initial public offering may raise approximately ₹5,000 crores in 2025.

During the extraordinary general meeting held on December 26, 2024, shareholders gave their consent for adopting the restated articles of association (AoA) and modifying the company’s ESOP-2022.

In the previous fiscal year (FY24), the company saw a major change in the ownership with HDFC Bank being asked to reduce stake to less than 10% post the merger of HDFC Limited and HDFC Bank Limited.

In a significant move in India's education financing sector, global private equity powerhouse EQT teamed up with ChrysCapital to acquire a controlling 90.01% stake in Credila Financial Services Limited. The landmark deal, valued at ₹9,060 crore, includes strategic fresh capital infusion of ₹2,003.61 crore. This capital injection came in two phases - an initial ₹700 crore invested by HDFC Ltd in June 2023, followed by EQT and ChrysCapital jointly contributing ₹1,303.61 crore in March 2024, marking a new chapter in Credila's growth journey. The consortium valued Credila at a pre-money valuation of ₹10,350 crore.

While the education finance company confirmed its IPO intentions, specific details about the offering size, pricing, and timeline were kept under wraps in this initial disclosure.

In FY24, the company’s profit before tax surged to ₹708.37 crore, nearly two-fold of the previous year’s ₹370.21 crore. The company’s education loan disbursements rose by 76% to ₹14,089 crore, while outstanding loan assets grew 84 per cent to ₹28,187 crore.

Summary

Credila Financial Services Limited, an education loan specialist, has filed a Draft Red Herring Prospectus (DRHP) with the market regulator and the exchanges. The initial public offering may raise approximately ₹5,000 crores in 2025.