HDFC Bank receives RBI approval to sell stake in HDFC Credila

livemint.com:

Indian stock market sentiment upbeat but investors need to be cautious, says Divam Sharma of Green Portfolio, PMS In August 2023, the Competition Commission of India (CCI), the antitrust regulatory body, approved the acquisition of a 90 percent equity holding in HDFC Credila by a private equity consortium consisting of BPEA EQT and ChrysCapital. On June 20 last year, HDFC Ltd disclosed to the exchanges that it had entered into definitive agreements for the potential sale of a 90 percent share in HDFC Credila to a consortium of private equity firms for approximately ₹9,060 crore.

“We further refer to our letters (i) dated July 01, 2023 wherein we had informed that HDFC Limited has been amalgamated with and into HDFC Bank effective July 1, 2023, and accordingly, the entire investment of HDFC Limited in HDFC Credila stood transferred to HDFC Bank with effect from July 1, 2023; and (ii) dated August 09, 2023 wherein we had informed that CCI at its meeting held on August 08, 2023, granted its approval for the Proposed Transaction in terms of Section 31(1) of the Competition Act, 2002," the company informed the exchanges. As per the agreement terms, HDFC possesses the authority to appoint a single non-executive nominee director to the board of HDFC Credila, under conditions specified in the shareholders’ agreement.

Additionally, the company retains customary preemptive rights as outlined in said agreement. Also read: Week Ahead: Auto sales, F&O expiry, Q3 GDP data, global cues among key market triggers this week In April 2022, preceding HDFC Ltd.'s merger with HDFC Bank, the Reserve Bank of India (RBI) mandated HDFC Ltd.