Credila Financial Services Files Draft IPO Papers with SEBI, Aims to Raise ₹5,000 Crore
Credila Financial Services, the first non-banking financial company (NBFC) in India to specialise in education loans, has filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The Company is one of the pioneers to offer customised education loan solutions, it aims to raise at least ₹5,000 crore through the IPO, which is expected to hit the market around March-April 2025. Credila filed the DRHP through a confidential pre-filing route, which allows it to withhold public disclosure of details mentioned in the document. The company's shareholders unanimously approved the proposal for an IPO during an extraordinary general meeting held on December 26.
Credila's Background
Formerly known as HDFC Credila Financial Services, Credila was acquired in June 2023 by a consortium led by Swedish investment giant EQT and Indian private equity firm ChrysCapital. The consortium purchased the firm from the HDFC Group for ₹9,060 crore, positioning Credila for rapid growth under its new leadership. As of March 2024, EQT held a 72.01% stake and ChrysCapital owned 18% in Credila Financial Services, while HDFC Bank retained a 9.99% stake. The change of control was mandated by the Reserve Bank of India (RBI) following the merger of HDFC Ltd with HDFC Bank, requiring HDFC Bank to reduce its shareholding in Credila to less than 10%.
Credila's Market Position
Credila Financial Services has become a dominant force in education financing, catering to students seeking higher education. The company has funded more than 178,000 Indian students across over 4,600 universities in over 64 countries. With a robust growth trajectory, the proposed IPO is expected to provide the company with additional capital to further scale its operations and expand its footprint in the education financing sector. According to the IBEF Report, the education sector in India, estimated to be worth $117 billion in FY20, is projected to reach $225 billion by FY25. This presents a significant market opportunity for the company.
Credila's Financial Performance
Credila Financial Services has demonstrated strong financial performance, solidifying its position in the education loan market. In fiscal year 2024 (FY24), the company disbursed education loans worth ₹14,089 crore, marking a 76% increase from FY23. The number of students benefiting from these loans rose to 53,603, up from 33,036 in the previous year. Credila’s total loan book grew 84% to reach ₹28,187 crore. Interest income on loans rose by 95% year-on-year, totaling ₹2,535 crore. Net profit for FY24 grew by 92%, reaching ₹528.84 crore. The company continued its growth momentum in FY25, with net profit for the first half of the year reaching ₹402.8 crore.
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