HDFC Bank, through an exchange filing on Monday (October 7) announced the sale of its entire stake in HDFC Education and Development Services Private Limited (HDFC Edu).
"The Bank has decided to undertake the sale of its 100% stake in HDFC Edu, a wholly owned subsidiary of the Bank," the company said in the BSE filing.
Details of the Sale
The Bank’s Board of Directors has officially given a green light to the sale of a 100 per cent stake in HDFC Edu to Vama Sundari Investments (Delhi) Private Limited, the successful bidder.
The sale will occur in two phases: a 91 per cent stake will be divested by October 31, 2024, while the remaining 9 per cent will be sold no later than June 30, 2025.
The sale is being conducted at an all-cash consideration, priced at RS 9.60 per share for a total of 20,00,00,000 shares, which amounts to Rs 192 crore.
This pricing was determined through a bidding process, maintaining that the transaction is conducted at arm’s length.
"Sale of 100% stake in HDFC Edu to Vama Sundari is pursuant to the RBI letter to the Bank dated April 20, 2023, mandating a full divestment from the said entity within 2 years from the Effective Date of merger of e-HDFC Limited with and into the Bank i.e. on or before June 30, 2025," added the bank in the regulatory filing.
Background of HDFC Edu
HDFC Edu was founded on November 17, 2011, and operates in the segments like school management, vocational training, and educational consultancy.
About its financial performance, it has reported a total incomes of Rs 10.02 crore in FY22, Rs 16.18 crore in FY23, and Rs 18.18 crore in FY24.
Share performance
The shares of the company today ended the day at Rs 1,623.05 apiece, down by 2.09 per cent.
