HDFC Bank on Monday announced that its board has approved the 100 per cent stake sale of its wholly owned subsidiary, HDFC Education and Development Services to Vama Sundari Investments Private Ltd. In a regulatory filing, HDFC Bank said, “We wish to inform you that the Board of Directors of the Bank has today approved sale of 100 per cent stake in HDFC Edu to Vama Sundari Investments (Delhi) Private Limited, being the successful bidder under the sale process.”
The sale will occur in two phases: HDFC Bank will divest 91 per cent stake in HDFC Education by October 31, 2024 and the remaining 9 per cent stake would be divested no later than June 30, 2025. “Upon completion of sale of remaining 9 per cent stake, necessary disclosure would once again be made by the Bank, in terms of the applicable provisions of the Listing Regulations,” it said.
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, aggregating to Rs 192 crore.
HDFC Bank said that the sale of 100 per cent stake in HDFC Education 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.
Post the completion of the sale of 91 per cent stake, HDFC Education would cease to be a subsidiary of the Bank
HDFC Education operates in the segments like school management, vocational training, and educational consultancy. For the financial year ended March 31, 2024, the company had recorded a total income of Rs 18.18 crore and its total assets came in at Rs 197.05 crore