Tribble Agency
Tribble Agency


Indiabulls Housing shares tank over 10% on United Kingdom bank deal

The announcement was made on Thursday when the domestic bourses were closed for Diwali. In intra-day trade, the stock touched a low of Rs.592.30, a level last seen on 29 June.

Pursuant to all applicable regulatory approvals from relevant regulators in India and the United Kingdom, viz. the Reserve Bank of India (RBI); the National Housing Bank (NHB); and the Prudential Regulation Authority (PRA) of the Bank of England, Indiabulls Housing Finance Ltd.is investing Dollars 100 million for 39.76% stake in OakNorth Bank, a licensed United Kingdom commercial Bank.

In a first, an Indian corporate house, Indiabulls Housing Finance, is acquiring a large stake in a foreign bank.

Indiabulls chairman Sameer Gehlaut will also have an option to acquire an additional 10% stake in his personal capacity in OakNorth Bank at the same valuation.

In a notice to the exchanges, the company explained the acquisition by saying that it will help the company chart a roadmap to a deposit-taking franchise.

Indiabulls Housing Finance is now engaged in the business of providing home loans. 80 valuing the company at Rs2,800 crore on Wednesday.

OakNorth Bank is focused on the structurally underserved small and medium enterprises sector (SME) in the United Kingdom It will benefit from the expertise of Indiabulls in lending to small businesses.

The bank was founded by Rishi Khosla and Joel Perlman who previously established Copal Amba, an outsource research business for investment banks, which they developed into a 2,500-employee company acquired by Moody's Corporation in 2014.

At 12.04 pm, the share price of Indiabulls Housing Finance was trading 12.93 per cent down at Rs 624.40.

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