Credila Financial Services plans to raise ₹5,000 cr via IPO

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Credila Financial Services Limited (formerly HDFC Credila Financial Services) has approved plans to raise capital through an initial public offering (IPO), potentially exceeding ₹5,000 crore, at its extraordinary general meeting held on December 26, 2024. The IPO, targeted for 2025, follows a significant ownership restructuring and exceptional financial performance in FY24.

In addition to approving the IPO plans, shareholders gave their consent for adopting restated articles of association and modifying the company’s Employee Stock Option Plan 2022 (ESOP-2022). The EGM was presided over by Independent Director and Board Chairman Damodarannair Sundaram at the company’s registered office in Mumbai.

The meeting met the quorum requirement with seven members present virtually. Representatives of the company’s secretarial auditors and internal auditor were also in attendance. The proceedings were conducted smoothly with no queries raised by the members during the discussion period.

The company underwent a major ownership change in FY24, with EQT and ChrysCapital acquiring a 90.01 per cent stake. EQT now holds 72.01 per cent, ChrysCapital Group 18 per cent, and HDFC Bank Limited retains 9.99 per cent. This restructuring was mandated by RBI following HDFC Limited’s merger with HDFC Bank Limited.

Remarkable growth

Credila’s financial performance showed remarkable growth in FY24, with profit before tax reaching ₹708.37 crore, nearly double the previous year’s ₹370.21 crore. The company’s education loan disbursements surged 76 per cent to ₹14,089 crore, while outstanding loan assets grew 84 per cent to ₹28,187 crore.

Credila Financial Services made this disclosure in compliance with SEBI Listing Regulations. The specific details regarding the size and timing of the proposed IPO were not disclosed in the filing.