Credila Financial Services Ltd, India’s leading education-focused NBFC, has filed an updated Draft Red Herring Prospectus (UDRHP-I) with the Securities and Exchange Board of India (SEBI) to launch its much-anticipated ₹5,000 crore Initial Public Offering (IPO).
According to the draft papers, the IPO comprises a fresh issue of equity shares worth ₹3,000 crore and an Offer for Sale (OFS) aggregating ₹2,000 crore. The OFS includes:
- ₹950 crore worth of shares to be offloaded by Promoter Kopvoorn B.V.
- ₹1,050 crore worth by HDFC Bank
This public issue aims to boost Credila’s capital base to support its ongoing business growth and expanding loan portfolio in the booming education financing sector.
Company Overview and Financials
Established in 2006, Credila has emerged as India’s largest education loan NBFC, catering to students seeking higher education both in India and abroad. The company reported net loans of ₹41,469 crore as of March 2025, along with a profit after tax (PAT) of ₹990 crore in FY25. In FY24, the firm disbursed loans worth ₹14,089 crore, demonstrating robust year-on-year growth.
Credila’s net loans surged at a CAGR of 64.96% between FY23 and FY25, while its assets under management (AUM) grew by 84.26% between March 2023 and March 2024—highlighting its aggressive expansion and growing demand in the education loan sector.
IPO Highlights:
- IPO Size: ₹5,000 crore
- Fresh Issue: ₹3,000 crore
- Offer for Sale: ₹2,000 crore (₹950 Cr by Kopvoorn B.V. & ₹1,050 Cr by HDFC Bank)
- Face Value: ₹10 per equity share
- Pre-IPO Placement: May raise up to ₹600 crore prior to IPO (subject to SCRR regulations)
- Purpose: Augment capital base to meet future growth requirements
- Book Running Lead Managers (BRLMs):
- Axis Capital
- Citigroup Global Markets India
- Goldman Sachs (India) Securities
- IIFL Capital Services
- Jefferies India
What’s Next?
The IPO timeline, including the opening and closing dates, allotment, and listing schedule, will be announced after regulatory approvals. Given the company’s market leadership, strong financial performance, and rising demand for education loans, investors are closely watching this IPO as a potential long-term opportunity.
Sources/Reference Links:
https://www.businesstoday.in/markets/ipo-corner/story/credila-financial-services-filed-updated-drhp-with-sebi-to-launch-rs-5000-crore-ipo-482108-2025-06-27
https://www.thehindubusinessline.com/markets/credila-financial-services-files-updated-draft-papers-for-5000-cr-ipo-with-sebi/article69744091.ece
https://www.livemint.com/market/ipo/ipo-update-credila-financial-services-files-udrhp-i-with-sebi-to-raise-rs-5-000-crores-via-ipo-11751002276744.html
Disclaimer:
This article is intended for informational purposes only. IPO investments involve risks. Kindly consult a SEBI-registered financial advisor before making any investment decisions.
