India’s largest mortgage company is diversifying into education loans. Housing Development and Finance Corporation (HDFC) has acquired a 41% stake in Credila Financial Services, a company that specialises in education loans, for Rs 10 crore. The transaction values the company at Rs 23 crore.
HDFC has acquired the stake from Merrill Lynch, which was an initial investor in the company, promoted by Anil Bohora and Ajay Bohora in 2006. Credila commenced business as an NBFC from 2007 with its registered office in Mumbai. It currently has offices in Pune, Bangalore, Hyderabad, Chennai, Delhi and Nashik.
“Education is growing expensive and the demand for education loans is growing,” said VS Rangan, senior GM — treasury, HDFC.
In recent years, large Indian business groups have forayed into education, a sector that many feel has a huge potential. A few private equity investors are also betting on education by buying into little-known unlisted entities that they think could join the valuation play in future. Read More>>