Financial service company HDFC Bank decided to sell its stake completely from HDFC Education and Development Services (DSPL), based on a regulatory filing of the bank on Saturday. The bank currently owns 100% of this subsidiary.
The transaction would be carried out via the Swiss challenge method, according to the filing report.
The Swiss Challenge Method involves an interested party placing a bid, which is then used as the anchor or base bid for other potential bidders. The other parties can then make counteroffers. The final purchaser will be selected at the end of this challenging process.
The banking company has already entered a binding term sheet with an interested party. The offer contained in this term sheet will serve as the anchor bid for the Swiss challenge process, defined by the bank in the report.
The successful bidder will be determined once the Swiss challenge process is completed. Once determined, HDFC Bank and the purchaser will proceed with final documentation. HDFC Education and Development Services provides services to three schools, was also added to the bank’s filing.
In February, HDFC Bank raised $300 million through its sustainable finance bond. This is part of an overall raise of $750 million in financing through Regulation Security Bonds.
As of December 2023, HDFC Bank held a 45% share of the commercial expenditures market.
To read more on Finance, head to the link.
