Indiabulls Housing Finance Limited has sold part of stake in Oak North Holding Ltd for Rs. 440 crores

Indiabulls Housing Finance Limited ['the Company'] has sold a portion of its stake in OakNorth Holding Ltd. [the wholly owning parent company of OakNorth Bank Ltd.] ['OakNorth'], to HighSage Ventures LLC for Rs. 440 crores. The sale proceeds will be accretive to the regulatory net worth and the CRAR of the Company.

Financial Times ranked OakNorth Bank as the fastest growing company in Europe across all sectors in its 'FT 1000 - Europe's Fastest Growing Companies 2020' rankings.

HighSage Ventures LLC is a Boston-based investment firm with an investor network spanning the venture capital, private equity and public equity communities. Mr. Jonathon S. Jacobson is the founding member of HighSage Ventures LLC and is also the Chief Investment Officer and Chief Executive Officer of Highfields Capital Management LP, which he co-founded in 1998. Prior to founding Highfields, Mr. Jacobson spent eight years as a senior portfolio manager at Harvard Management Company Inc., which is responsible for investing Harvard University's endowment.

The Company plans to conclude few other transactions on the partial stake sale in OakNorth Bank over the next few days. The divestments in OakNorth Bank will result in boosting CRAR and shall free up capital to grow the loan book of the Company.

OakNorth Bank was launched in September 2015 and the Company had invested ₹ 663 crores in November 2015 for a 40% stake in the bank. With first major investment from Indiabulls Housing in 2015, the bank started addressing the mid-market funding gap in the UK, a business similar to Loans against Property business that Indiabulls Housing has done very successfully. In the highly competitive and regulated market of UK, OakNorth Bank became profitable in just 11 months, and within four years of operations has grown its deposits to just under £ 3 billion and has lent over £ 4 billion since its launch.

Shares of Indiabulls Housing Finance Ltd was last trading in BSE at Rs.201.15 as compared to the previous close of Rs. 202.25. The total number of shares traded during the day was 1984568 in over 23105 trades.

The stock hit an intraday high of Rs. 202.7 and intraday low of 193.2. The net turnover during the day was Rs. 394387081.

Source : Equity Bulls

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