HDFC Bank Plans 100% Stake Sale of HDFC Education and Development Services

On March 30, 2024, HDFC Bank stated in a regulatory filing that the company had decided to sell its 100% stake in HDFC Education and Development Services Private Ltd.

HDFC Bank’s Decision to Divest Stake

HDFC Bank informed the exchanges that it decided to sell its entire stake in HDFC Education and Development Services Private Ltd. The transaction will be undertaken through the Swiss challenge method. HDFC Education and Development Services is involved in offering services to 3 education schools.

The company stated, “This is in connection with our earlier intimation dated April 21, 2023, wherein we had informed that the Reserve Bank of India (the “RBI”) has permitted HDFC Bank to continue to hold the stake of erstwhile Housing Development Finance Corporation Limited (HDFC Limited) in HDFC Education and Development Services for a period of 2 (two) years from the effective date of the composite scheme of amalgamation for the amalgamation of (i) HDFC Investments Limited and HDFC Holdings Limited, wholly owned subsidiaries of HDFC Limited, with and into HDFC Limited and (ii) HDFC Limited with and into HDFC Bank.”

“In furtherance of the aforesaid RBI direction and after due deliberation and in the interests of maintaining transparency in the proposed divestment, HDFC Bank has decided to undertake the sale of its 100% stake in HDFC Edu. (the “Proposed Transaction”) using the Swiss challenge method,” said HDFC Bank in the exchange filing.

HDFC Bank added that with regard to the same, on March 30, 2024, they entered into a binding term sheet with an interested party. The offer contained in such term sheet shall serve as the anchor/base bid to seek counter offers from other parties interested in participating in the aforesaid Swiss challenge process.

The bank mentioned that they shall finalise the purchaser based on the completion of the Swiss challenge process, following which such purchaser and HDFC Bank will enter into definitive documentation for the purposes of the Proposed Transaction, i.e., HDFC Education and Development Services.

Further, HDFC Bank said that the specific details of the definitive documentation related to the Proposed Transaction will be disclosed once such documentation is finalised and executed.

On April 1, 2024, the HDFC Bank share price opened at ₹1,458.00, touching the day’s high at ₹1,473.80, as of 10:27 AM on the NSE.

About HDFC Bank 

HDFC Bank provides a comprehensive range of banking and financial services, which include retail banking, wholesale banking, and treasury operations.

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