HDFC Bank Board Approves 100% Stake Sale of HDFC Education to Vama Sundari Investments

HDFC Bank Board Approves 100% Stake Sale of HDFC Education to Vama Sundari Investments

HDFC Bank has announced the sale of its entire 100% stake in its wholly owned subsidiary, HDFC Education and Development Services, to Vama Sundari Investments Private Ltd. The bank’s board approved this decision on Monday, as per a regulatory filing. The sale will happen in two phases: 91% of the stake will be divested by October 31, 2024, while the remaining 9% will be sold by June 30, 2025. This process aligns with the Reserve Bank of India’s directive mandating the bank to fully divest from HDFC Education within two years of the merger between HDFC Limited and HDFC Bank, which was completed on June 30, 2023.

HDFC Bank is conducting the sale at an all-cash price of ₹9.60 per share, with a total of 20 crore shares amounting to ₹192 crore. Following the sale of the initial 91% stake, HDFC Education will cease to be a subsidiary of HDFC Bank, with full divestment expected after the sale of the remaining 9%.

HDFC Education, which focuses on school management, vocational training, and educational consultancy, recorded a total income of ₹18.18 crore for the financial year ending March 31, 2024, and held total assets worth ₹197.05 crore. The sale is in line with HDFC Bank’s efforts to comply with regulatory requirements while focusing on its core banking operations.