Credila Financial Services Limited files UDRHP-I with SEBI to raise ₹ 5,000 crores through IPO

Credila Financial Services Limited, (“the Company”) an Indian education finance company focused on providing education loans to Indian students pursuing higher education in India and overseas has filed its UDRHP-I with SEBI.

The Company plans to raise funds through initial public offering. The total issue size aggregating up to ₹ 5,000 crores comprises of fresh issue of equity share aggregating up to ₹ 3,000 crores and offer for sale of Equity Share aggregating up to ₹ 2,000 crores of face value of ₹ 10 per equity share.

The Offer for sale of equity share aggregating up to ₹2,000 crores (face value of ₹10 each) comprises of up to ₹ 950 crores by Kopvoorn B.V. (“Promoter Selling Shareholder”) and up to ₹1,050 crores by HDFC Bank Limited (“Other Selling Shareholder”).

Founded in 2006, the company is a leading education finance company in India across multiple parameters according to industry report.

The Company proposes to utilise the Net Proceeds towards augmenting capital base to meet Company’s future capital requirements arising out of growth of its business and assets.

Credila Financial Services Limited is the second fastest growing education-focused NBFC in India in terms of year-on-year growth of Net Loans, with a year-on-year growth of 47.67% between the Financial Years 2024 and 2025, according to industry report.

A Pre-IPO Placement of the specified securities may be undertaken by the company, in consultation with the BRLMs, prior to the filing of the Red Herring Prospectus with the ROC for an aggregate amount not exceeding ₹600 crore (“Pre-IPO Placement”). The Pre-IPO Placement, if undertaken, will be at a price to be decided by the company in consultation with the BRLMs. If the Pre-IPO Placement is undertaken, the amount raised from the Pre-IPO Placement will be reduced from the fresh issue, subject to the offer complying with rule 19(2)(B) of the securities contracts (Regulation) rules, 1957, as amended (“SCRR”). The Pre-IPO Placement, if undertaken, shall not exceed 20% of the fresh issue.

The Company is the largest education-focused non-banking financial company (“NBFC”) in India (which peer set comprises three companies, including Credila), with Net Loans of ₹41,469 crores as of March 31, 2025; restated net profit after tax of ₹ 990 crores for the Financial Year 2025; and the highest disbursements of ₹14,089 crores for the Financial Year 2024 (assessment performed for Financial Year 2024 given unavailability of peer data for Financial Year 2025).

The Company is the fastest growing education-focused NBFC in India (comprising three companies, including including Credila) with a CAGR of 64.96% in Net Loans between the Financial Years 2023 and 2025 and a year-on-year growth of 84.26% in assets under management (“AUM”) between March 31, 2023 and March 31, 2024 (assessment performed for Financial Year 2024 given unavailability of peer data for Financial Year 2025).

Axis Capital Limited, Citigroup Global Markets India Private Limited, Goldman Sachs (India) Securities Private Limited, IIFL Capital Services Limited (formerly known as IIFL Securities Limited) and Jefferies India Private Limited are the Book Running Lead Managers to the issue.