Education loan provider Credila Financial Services files IPO papers with Sebi

Education loans-focused lender Credila Financial Services Ltd, formerly known as HDFC Credila Financial Services Ltd, has filed papers with markets regulator Sebi for an initial public offering (IPO) through a confidential pre-filing route.

The confidential pre-filing route allows the company to withhold public disclosure of details under the draft red herring prospectus (DRHP).

In a public announcement on Friday, Credila said it has "filed pre-draft red herring prospectus with the Sebi and stock exchanges ... In relation to the proposed initial public offering of its equity shares on the main board".

This development follows a significant change in the company's ownership during the financial year ended March 31, 2024.

A private equity consortium of EQT and ChrysCapital acquired a 90.01 per cent stake in Credila for Rs 9,060 crore, including a fresh equity infusion of Rs 2,003.61 crore. Of this, Rs 700 crore was infused in June 2023 by the erstwhile HDFC Ltd, while the remaining Rs 1,303.61 crore was contributed in March 2024 by EQT and ChrysCapital entities.

The consortium valued Credila at a pre-money valuation of Rs 10,350 crore.

As of March 31, 2024, EQT holds 72.01 per cent ChrysCapital owns 18 per cent, and HDFC Bank retains a 9.99 per cent stake.

The change of control came after the Reserve Bank of India (RBI) directed HDFC Bank to reduce its shareholding in the company to less than 10 per cent after the merger of HDFC Ltd with HDFC Bank.

Credila recorded impressive growth during the fiscal year ended March 31, 2024 with total income rising sharply to Rs 2,771.04 crore from Rs 1,352.18 crore in the previous year and profit after tax nearly doubling to Rs 528.84 crore from Rs 275.92 crore.