Indiabulls Housing Finance Ltd to sell MF business to Groww

Indiabulls Housing Finance Ltd ("The Company"), the Sponsor of Indiabulls Mutual Fund is one of India's largest housing finance companies [HFCs] having net worth of over Rs. 16,500 Crores. The Company is engaged in providing home loans and loans to small business owners.

The Company has decided to focus on its Real Estate Asset Management business through AIF structures in line with its asset-light strategy. The Real Estate Asset Management business is complementary to the core business of the Company and the sponsor plans to grow this business in partnership with global player(s). Therefore, the Mutual Fund business does not remain a core focus area for the Company.

Considering all of the above, the sponsor has decided to focus management bandwidth and consolidate capital towards its core lending business and divest out of the Mutual Fund business. In this respect, the Company along with its wholly owned subsidiary companies Indiabulls Asset Management Company Limited (IAMCL) and Indiabulls Trustee Company Limited, Trustee of IAMCL, (ITCL) has executed definitive transaction document with Nextbillion Technology Private Limited, part of Groww Group (hereinafter referred to as "Groww"), to divest its entire stake in mutual fund business, being carried out by IAMCL & ITCL to the Groww at an aggregate purchase consideration of INR 175 crores (including cash and cash equivalents of INR 100 Crore, as on closing date) ("Transaction") subject to necessary approvals, as may be required in this regard.

Groww commenced its financial services business in May, 2016 and currently is one of the leading tech platforms for investing inter alia in stocks and mutual funds. Groww is headquartered in Bangalore and backed by marquee investors including Tiger Global, Sequoia Capital India, Y Combinator and Ribbit Capital. Groww is presently serving over 1.5 Crore users across 900+ cities in India. Nextbillion Technology Private Limited is a SEBI registered Stock Broker, Depository Participant and AMFI registered Mutual Fund Distributor.

Subject to satisfaction of closing conditions, agreed between the parties, the Transaction is expected to be concluded on or before June 30, 2022. Post conclusion of the Transaction the Company will cease to hold any equity shares and its sole control over IAMCL and ITCL.

Shares of Indiabulls Housing Finance Ltd was last trading in BSE at Rs.186.85 as compared to the previous close of Rs. 179.75. The total number of shares traded during the day was 561019 in over 4095 trades.

The stock hit an intraday high of Rs. 188 and intraday low of 179.8. The net turnover during the day was Rs. 103480414.

Source : Equity Bulls

Keywords