HDFC Bank, India’s largest private sector bank by assets, plans to invest Rs 3 crore in the first tranche to acquire a stake in the India Debt Resolution Company Limited (“IDRCL”) by an equity securities subscription. In total, HDFC Bank plans to invest Rs 7.50 crore in IDRCL to acquire a 15% share.
On March 28, HDFC Bank and IDRCL inked an agreement, with the first tranche expected to be completed 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.”
IDRCL was founded on September 3, 2021, to operate as a debt management company and provide debt management, operational management, and consultation services regarding debt resolution for asset reconstruction companies, investment trusts, and other securities portfolios.