India’s largest private sector bank by assets, HDFC Bank is set to infuse ₹3 crore in the first tranche to acquire a portion of shareholding in the India Debt Resolution Company Limited (“IDRCL”) by way of subscription to equity securities. Overall, HDFC Bank plans to pump in ₹7.50 crore in IDRCL to acquire about a 15% stake.
HDFC Bank signed an agreement with IDRCL on March 28, and the first tranche is expected to complete by March 31, 2022.
In its regulatory filing, HDFC Bank said, “equity investment will be done in tranches and the first tranche of equity investment of ₹3 crore is expected to be completed by March 31, 2022. Subsequent tranches of equity investment will be made as and when determined by the Board of Directors of IDRCL.”
Furthermore, HDFC Bank mentioned that total cash consideration of ₹7.50 crore in tranches will be invested to acquire up to 15% equity holding in IDRCL.
Incorporated on September 3, 2021, IDRCL’S objective is to carry on the business as a debt management
company and to do all kinds of debt management, operational management, and consultancy services in relation to debt resolution for an asset reconstruction company or investment trust, or any other portfolio of securities.
On Monday, HDFC Bank shares were trading on a positive note. At around 2.25 pm, the shares were performing at ₹1440.65 apiece up by Rs7.75 or 0.54% on BSE. The shares have touched an intraday high and low of ₹1446.35 apiece and ₹1430 apiece respectively.