Mortgage-focused lender Credila Financial Services Ltd, formerly HDFC Credila Financial Services Ltd, has filed papers with market regulator Sebi for an initial public offering (IPO) through a private pre-booking channel.
The confidential pre-filing route allows the company to withhold public disclosure of information under a draft red herring prospectus (DRHP).
In a public announcement on Friday, Credila said it had “filed a pre-written red herring prospectus with Sebi and the stock exchange … Regarding the proposed initial public offering of its equity shares on the main board”.
This development follows a major change in the company’s ownership during the financial year ended March 31, 2024.
A private equity consortium of EQT and ChrysCapital acquired 90.01 percent stake in Credila for Rs 9,060 crore, including fresh equity injection of Rs 2,003.61 crore. Of this, Rs 700 crore was contributed in June 2023 by erstwhile HDFC Ltd, while another Rs 1,303.61 crore was contributed in March 2024 by EQT and ChrysCapital.
The consortium valued Credila at an upfront cost of Rs 10,350 crore.
As of March 31, 2024, EQT holds 72.01 percent, ChrysCapital holds 18 percent, and HDFC Bank retains a total of 9.99 percent.
The change in control took place after the Reserve Bank of India (RBI) ordered HDFC Bank to reduce its shareholding in the company to less than 10 percent following the merger of HDFC Ltd and HDFC Bank.
Credila recorded impressive growth in the financial year ended March 31, 2024 with revenue rising sharply to Rs 2,771.04 crore from Rs 1,352.18 crore in the previous year and profit after tax nearly doubling to Rs 528.84 crore from Rs 275.