HDFC Bank, India’s largest private sector lender, announced on October 7 that its board has approved the sale of its entire 100% stake in HDFC Education and Development Services Private Ltd (HDFC Edu) to Vama Sundari Investments (Delhi) Private Ltd for ₹192 crore.

In a stock exchange filing, HDFC Bank stated, “…we wish to inform you that the Board of Directors of the Bank has today approved the sale of a 100% stake in HDFC Edu to Vama Sundari Investments (Delhi) Private Limited, being the successful bidder under the sale process.”

This divestment is part of a mandate from the Reserve Bank of India (RBI), requiring HDFC Bank to fully exit from HDFC Edu within two years following its merger with e-HDFC Ltd. The final deadline for this divestment is set for June 30, 2025.

As per the bank’s divestment timeline, it plans to sell a 91% stake in HDFC Edu by October 31, 2024, and the remaining 9% by the final deadline of June 30, 2025.

The transaction was executed at arm’s length and followed a competitive bidding process. Prior approval from HDFC Bank’s Audit Committee was obtained due to Vama Sundari’s status as a related party of HDFC Asset Management Company Ltd. The deal is priced at ₹9.60 per share, with all cash consideration involved.

For the fiscal year 2024, HDFC Edu reported a total income of ₹18.18 crore and held total assets valued at ₹197.05 crore. The company specializes in educational services, covering a range of sectors including K-12 education, higher education, vocational training, and supplementary education services.