HDFC Bank, a prominent private sector lender in India, is in the process of divesting its entire stake of 100% in HDFC Education and Development Services. The bank aims to execute this through the Swiss challenge method, seeking transparency and competitive offers from potential buyers.
In a regulatory filing on March 30, HDFC Bank disclosed its engagement with an interested party through a binding term sheet, laying the groundwork for soliciting counter offers. The selection of the final purchaser will follow the Swiss challenge process.
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Upon selection, HDFC Bank and the chosen buyer will finalize definitive documentation for the transaction. The bank emphasizes compliance with regulatory requirements, ensuring transparency throughout the divestment process.
Previously, the Reserve Bank of India (RBI) had granted approval to HDFC Bank to maintain ownership in HDFC Education for two years post-merger with Housing Development Finance Corporation Limited (HDFC Ltd) and HDFC Bank.
HDFC Bank’s shares closed 0.44% higher at ₹1,447 each on the NSE as of Thursday.
