Credila Files Updated IPO Papers with SEBI to Raise ₹5,000 Crore

Credila Financial Services, a leading education loan provider, has filed updated draft papers with capital markets regulator SEBI to raise up to ₹5,000 crore through an initial public offering (IPO).

Issue Structure: Fresh + Offer for Sale

According to the updated draft red herring prospectus (UDRHP) filed on Thursday, the proposed IPO consists of a fresh issue of ₹3,000 crore and an offer for sale (OFS) of ₹2,000 crore. The OFS will see Kopvoorn BV, an affiliate of EQT Private Capital Asia, selling shares worth ₹950 crore, while HDFC Bank Ltd plans to offload a ₹1,050 crore stake.

The Mumbai-based company is also evaluating a pre-IPO fundraise of up to ₹600 crore. If that materialises, the size of the fresh issue will be reduced accordingly.

Timeline and Regulatory Path

This updated draft follows SEBI’s approval of Credila’s confidential filing last month. The company had originally filed its offer documents in December 2024 under SEBI’s pre-filing route, which allows companies to receive regulatory feedback without immediate public disclosure.

As part of the process:

• Credila submitted the confidential DRHP for SEBI’s internal review.

• After incorporating regulatory feedback, the UDRHP-I was filed and opened to public comments for 21 days.

• A final round of updates (UDRHP-II) will follow, post which the IPO may be launched.

Use of Proceeds

The net proceeds from the fresh issue will be used to strengthen Credila’s capital base, allowing it to meet future lending and asset growth requirements. The company aims to expand its education loan portfolio and maintain leadership in the sector.

Market Position and Performance

Founded in 2006, Credila focuses exclusively on financing higher education for Indian students, both domestically and abroad. As of March 31, 2025, the company has disbursed a cumulative ₹53,754 crore in education loans.

Credila is currently the largest education-focused NBFC in India (among a peer set of three), with net loans of ₹41,469 crore and disbursements of ₹14,089 crore in FY24. The company also reported the highest profit after tax among its peers at ₹989.96 crore for FY25.

Evolution and Ownership Timeline

Credila’s journey has seen several ownership transitions:

• HDFC Ltd first invested in 2009 and made it a subsidiary in 2010.

• By 2019, it became a wholly-owned subsidiary of HDFC Ltd.

• In 2020, Credila was converted into a public limited company.

• Post the merger of HDFC Ltd into HDFC Bank in June 2023, EQT and ChrysCapital acquired a 90% stake in the company in early 2024, following an RBI directive asking HDFC Bank to reduce its shareholding below 10%.

• As of now, EQT and ChrysCapital hold 81.42%, while South Korea’s Shinhan Bank owns 11%.

Listing and Advisors

Credila’s shares are proposed to be listed on both the BSE and NSE.
Book-running lead managers for the IPO: Axis Capital, Citigroup, Goldman Sachs, IIFL Capital, and Jefferies India.
Registrar of the issue: KFin Technologies has been appointed as the registrar to the issue.

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