Credila Financial Services, formerly HDFC Credila Financial Services, is gearing up for a significant milestone—a massive INR 5,000 crore initial public offering (IPO). The company recently filed preliminary papers with the Securities and Exchange Board of India (SEBI), marking a major step toward scaling up operations and boosting its financial muscle.
Shareholders Back IPO and ESOP Adjustments
On 26 December 2024, during an Extraordinary General Meeting (EGM), Credila secured the green light from its shareholders to raise funds through the IPO. In the same meeting, shareholders gave their nod to tweaks in the Employees Stock Option Plan (ESOP) – 2022. These changes underscore Credila’s commitment to recognizing employee contributions and strengthening its talent base as it prepares for public listing.
Credila Financial Services IPO Filing
Credila has already submitted its DRHP to SEBI, along with filings to the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). While the filings signal intent, the actual launch hinges on regulatory approvals and prevailing market dynamics. The timeline remains flexible, with 2025 emerging as the most likely target for hitting the markets.
Top Investment Banks Sign On
To navigate the intricate IPO process, Credila has brought on board a powerhouse lineup of investment banks. Jefferies, Citi, Axis Capital, IIFL Capital, and BofA Securities are set to guide the company through its listing journey. Their combined expertise is expected to smooth out any bumps in the road and position the IPO for success.
Credila Financial Services – Financial Performance
Credila’s financial performance in recent years paints a picture of steady growth and momentum:
- Loan Disbursements: The company disbursed INR 14,089 crore in education loans in FY24—a sharp 76% jump from INR 7,992 crore in FY23. The number of beneficiaries climbed from 33,036 to 53,603 students over the same period.
- Loan Book Growth: Credila’s total loan book grew 84%, reaching INR 28,187 crore by the end of FY24.
- Interest Income: Revenue from interest surged 95% to INR 2,535 crore, reflecting a healthy rise in income streams.
- Profitability: Net profit stood at INR 528.84 crore in FY24, marking a 92% year-on-year rise. Notably, the September quarter alone saw a 65% jump in net profit to INR 226.5 crore.
Ownership and Acquisition
June 2023 marked a turning point for Credila. Following a regulatory push for HDFC Bank to pare down its holding in the company post-merger with HDFC, Credila underwent a major ownership reshuffle.
Swedish investment group EQT and Indian private equity firm ChrysCapital jointly acquired Credila for INR 9,060 crore. As of 31 March 2024, EQT holds a commanding 72.01% stake, ChrysCapital owns 18%, and HDFC Bank retains a modest 9.99%. This diversified ownership lends Credila added credibility as it charts its course toward a public listing.
A Market Poised for Growth
Credila’s IPO isn’t just about raising funds; it’s about tapping into India’s surging education financing market. With higher education costs rising and more students seeking loans, the sector has ample room for expansion. For investors eyeing growth opportunities, Credila’s upcoming IPO could be one to watch.
Final Thoughts
Credila Financial Services’ journey toward its IPO encapsulates ambition and growth. With financial performance firing on all cylinders, strategic ownership, and seasoned advisors in place, the company is gearing up for a transformative move. Whether the markets are ready remains to be seen, but one thing is clear—Credila is preparing to leave its mark. For more information related to IPO GMP, SEBI IPO Approval, and Live Subscription stay tuned to IPO Central.
