The largest private sector lender HDFC Bank on Monday (October 7) announced its board's approval for the sale of its 100% stake in HDFC Education and Development Services Private Ltd (HDFC Edu) to Vama Sundari Investments (Delhi) Private Ltd for ₹192 crore.
"...we wish to inform you that the Board of Directors of the Bank has today approved the sale of a 100% stake in HDFC Edu to Vama Sundari Investments (Delhi) Private Limited, being the successful bidder under the sale process," the company said in a stock exchange filing.

The divestment, mandated by the Reserve Bank of India (RBI), requires HDFC Bank to fully exit from HDFC Edu within two years of its merger with e-HDFC Ltd, with a final deadline set for June 30, 2025.

As per the bank’s outlined divestment timeline, it will initially sell a 91% stake in HDFC Edu by October 31, 2024, and transfer the remaining 9% by June 30, 2025.

The transaction was conducted at arm’s length following a competitive bid process and has received prior approval from HDFC Bank’s Audit Committee, given Vama Sundari’s status as a related party to HDFC Asset Management Company Ltd. The transaction was priced at ₹9.60 per share, with all cash consideration.

For FY24, HDFC Edu reported a total income of ₹18.18 crore and held total assets of ₹197.05 crore. HDFC Edu’s business focuses on educational services across K-12, higher education, vocational training, and other supplementary education services.

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Published-October 7, 2024, 6:14:05 PM IST