HDFC may pick Jefferies as advisor for $1 billion Credila sale
HDFC Credila Financial Services Ltd sale is a part of the lender's moves to comply with regulators' requirements
India's largest mortgage financier, HDFC Bank has picked Jefferies Financial Group Inc to manage the sale of a unit that offers student loans, said people familiar with the matter, adding that it could even seek a value of as much as $1 billion for HDFC Credila Financial Services Ltd. in a sale.
HDFC Credila Financial Services Ltd sale is a part of the lender's moves to comply with regulators' requirements for its merger with the HDFC Bank Ltd, they said on the condition of anonymity.
They also stated that Jefferies has started initial talks with interested bidders and a formal process for sale may be launched soon, according to sources.
HDFC Bank, in an exchange filing last month, said that the Reserve Bank of India has given the merged entity two years to cut its stake in fully-owned Credila to 10%.
The sale mandate will be one of the biggest managed by Jefferies in the country and will help in its ambition to build a deal advisory business in the local market, Bloomberg reported.
The people reported that there is no decision on the valuation and time by which the sale will be completed. Spokespersons for HDFC and Jefferies declined to comment on it.
