Credila Financial Services, formerly known as HDFC Credila Financial Services, has submitted pre-filed draft papers with SEBI to initiate its fundraising process through an initial public offering (IPO). The decision was unanimously approved by shareholders during an extraordinary general meeting held on December 26, where they passed resolutions to raise capital and revise the Employee Stock Option Plan (ESOP) of 2022.
The company said, “Credila has filed its pre-filed draft red herring prospectus (DRHP) with the Securities and Exchange Board of India, BSE, and the National Stock Exchange of India, for the proposed equity share offering.” Yet, according to the filing, it does not mean the company will go ahead with the IPO.
The buyout of Credila, India’s leading financier of education loans, is being led by Swedish investment firm EQT and domestic private equity player ChrysCapital; the deal was inked in June 2023 after HDFC Group had divested it.
Credila reported a massive growth in its education loan disbursement, which grew 76% to Rs 14,089 crore from Rs 7,992 crore in FY23. It supported 53,603 students in FY24 against 33,036 students in the previous fiscal year.
Its loan book has grown 84% to Rs 28,187 crore in FY24, while interest income jumped 95% to Rs 2,535 crore during the same period. Net profit also witnessed strong growth, jumping 92% to Rs 528.84 crore in FY24.
Credila has posted a net profit of ₹226.5 crore for the September 2024 quarter, up 65.7% against ₹136.7 crore in the same period last year. Total income for the quarter rose 79.6% to ₹1,166.6 crore. For H1FY25, it reported a net profit of ₹402.8 crore, up 72.6% year-on-year. Total income grew 84.4% to ₹2,110 crore.
With its strong financial performance, Credila has always emerged as a consistent and growth-oriented player in the education loan sector, which indeed positions it as a key player in India’s financial landscape as it gears up for its IPO.
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Source: Moneycontrol
News Desk
