Credila Financial Services Files for ₹5,000 Crore IPO, Strong Growth in FY24

Credila Financial Services, formerly known as HDFC Credila Financial Services, has submitted pre-filed draft documents to the Securities and Exchange Board of India (SEBI) in preparation for an initial public offering (IPO).

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During an extraordinary general meeting held on December 26, the shareholders of the leading education loan provider unanimously approved a special resolution for raising capital through the IPO. Additionally, modifications to the Employees Stock Option Plan (ESOP) - 2022 were also sanctioned.

The company stated in a public notice that it has filed the pre-filed draft red herring prospectus (DRHP) with SEBI, BSE, and the National Stock Exchange of India (NSE). This filing pertains to the proposed offering of equity shares with a face value of ₹10 each, to be listed on the primary stock exchanges. However, Credila clarified that the DRHP filing does not guarantee that the offering will proceed.

Moneycontrol previously reported in September that Credila had appointed five investment banks—Jefferies, Citi, Axis Capital, IIFL Capital, and BofA Securities—as advisors for its IPO, which is anticipated to raise over ₹5,000 crore in 2025.

In June 2023, HDFC Credila was acquired by a consortium comprising Swedish investment giant EQT and Indian private equity firm ChrysCapital from the HDFC Group.

Financial Performance Highlights:

• Education Loans: The company disbursed ₹14,089 crore in FY24, a 76% increase compared to ₹7,992 crore in FY23. It provided loans to 53,603 students in FY24, up from 33,036 students in the prior year.
• Loan Book Growth: Credila's loan book expanded by 84% in FY24, reaching ₹28,187 crore, while interest income surged by 95% to ₹2,535 crore.
• Net Profit: FY24 net profit rose by 92% to ₹528.84 crore, driven by a 79% growth in net interest income from the enlarged loan book.
• Quarterly Results: For Q2 FY24, net profit increased by 65.7% to ₹226.5 crore, while total income grew by 79.6% to ₹1,166.6 crore compared to the same period in the previous year.
• First Half of FY24: The company recorded a 72.6% rise in net profit to ₹402.8 crore and an 84.4% increase in total income to ₹2,110 crore.
   

This strong financial performance reflects the company’s significant growth in disbursements and profitability, positioning it for a prominent IPO debut.