NEW DELHI, Oct 10: Private lender HDFC Bank will sell 100 percent stake in its subsidiary HDFC Education And Development Services Private Limited (HDFC Edu) to Vama Sundari Investments (Delhi) Private Limited, an HCL Group Company.
The Board of Directors of HDFC Bank has approved the proposal, the Bank said in a release adding this proposed divestment is pursuant to the directions of the Reserve Bank of India (RBI) following the merger of erstwhile HDFC Limited with HDFC Bank Limited in July 2023.
HDFC Edu was established with a vision and a commitment to making a meaningful impact on school systems nationwide through its professional services and support.
The proposed divestment of HDFC Bank’s shareholding in HDFC Edu will not change or shift HDFC Edu’s commitment to enhancing quality school education. HDFC Edu will continue to work on its mission under the ownership of HCL Group.
HCL Group is known for its strategic investments, innovation, and an experienced leadership team consistently delivering outstanding educational outcomes. Its founder, Mr Shiv Nadar is a philanthropist who established the Shiv Nadar Foundation that runs VidyaGyan Schools, Shiv Nadar Schools and Shiv Nadar Universities.
Over the years, these institutions have established a reputation for innovation, quality education, and excellence. HCL Group’s reputation and principles align with the vision and mandate under which erstwhile HDFC Ltd set up HDFC Edu.
Mr. V.S. Rangan, Executive Director, HDFC Bank, said, “This divestment has been necessitated due to regulatory requirements for HDFC Bank. The divestment of HDFC Edu went through a long, comprehensive process involving scrutiny of potential acquirers based on a set of eligibility criteria such as financial health, relevant experience etc. and alignment with the core educational values cultivated over the past decade by HDFC Edu.
“We are confident that HCL Group will uphold the exceptional standards of services that HDFC Edu has been providing to the HDFC Schools, providing a nurturing and academically rigorous environment for the students,” Rangan added.
In his comments, Mr. Shikhar Malhotra, Director, HCL Corporation and Trustee, Shiv Nadar Foundation said, “With a legacy of three decades in education, HCL Group has a vision of establishing and nurturing educational institutions of excellence countrywide. We are delighted to be entrusted with the responsibility of upholding and enhancing the educational mandate of HDFC Edu.
Our foremost commitment is to ensure continuity and stability for students, parents, and faculty. We will further nurture and grow an already thriving educational environment bequeathed to us while preserving the core values and educational excellence that define The HDFC Schools.” (UNI)
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