Left Menu
Development News Edition

Indiabulls Housing sells partial stake in UK-based OakNorth Bank for Rs 440 cr

Indiabulls Housing also launched its QIP on Wednesday and hopes to garner about Rs 500 crore from the issue, for which it has set the floor price at Rs 206.70 per equity share. In total, the company is expecting to raise about Rs 1,000 crore from this QIP and partial stake divestment in OakNorth Bank.

PTI | New Delhi | Updated: 10-09-2020 16:28 IST | Created: 10-09-2020 16:28 IST
Indiabulls Housing sells partial stake in UK-based OakNorth Bank for Rs 440 cr

Indiabulls Housing Finance on Thursday said it has sold a part of its stake in the UK-based OakNorth Holding Ltd, the parent company of OakNorth Bank Ltd, to HighSage Ventures LLC for Rs 440 crore. The sale proceeds will be accretive to the regulatory net worth and the CRAR (capital to risk weighted assets ratio) of the company, Indiabulls Housing Finance said in a regulatory filing.

On Wednesday, the company had informed about partial stake sale in OakNorth Bank in one or more tranches to boost its capital. HighSage Ventures LLC is a Boston-based investment firm with an investor network spanning the venture capital, private equity and public equity communities.

"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," said the non-banking finance company. OakNorth Bank was launched in September 2015 and the company had invested Rs 663 crore in November 2015 for a 40 per cent 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, it said. Within two years of this, in November 2017, the company recouped its investment by selling about 10 per cent stake to the Government of Singapore's investment arm GIC for Rs 770 crore.

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 pounds and has lent over 4 billion pounds since its launch, it added. Indiabulls Housing also launched its QIP on Wednesday and hopes to garner about Rs 500 crore from the issue, for which it has set the floor price at Rs 206.70 per equity share.

In total, the company is expecting to raise about Rs 1,000 crore from this QIP and partial stake divestment in OakNorth Bank. Shares of the company closed at Rs 194.05 apiece on the BSE, down 3.53 per cent from the previous close.


TRENDING

OPINION / BLOG / INTERVIEW

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Guinea’s elections hearken back to the autocracy and violence of its past

... ...

Pandemic-era FinCEN leaks ratchet up the urgency of lifting the veil on financial secrecy

As the coronavirus pandemic reverses decades of gains in combatting inequality, its more urgent than ever that authorities excise the dirty money that has metastasized within the financial systems guts....

Videos

Latest News

Israel to start human trials of COVID vaccine candidate 'Brilife' towards Oct-end

Israel has named its COVID-19 vaccine candidate Brilife and its human trials will begin by October-end, according to an official press release. The prospective vaccine is being developed by the Israel Institute of Biological Research IIBR t...

Second Trump-Biden debate to feature a 'mute' button, organizers say

Thursdays debate between President Donald Trump and Democratic challenger Joe Biden will feature a mute button to allow each candidate to speak uninterrupted, organizers said on Monday, in an effort to avoid the disruptions that marred the ...

Argentina exceeds 1 million coronavirus cases as spike strains health system

Argentina has become the fifth country with more than 1 million coronavirus cases, its Health Ministry and a Reuters tally confirmed on Monday, making it the smallest nation by far to reach the grim milestone after infections accelerated in...

U.S. and Brazil must reduce dependence on China imports - Pompeo

U.S. Secretary of State Mike Pompeo warned on Monday the United States and Brazil need to reduce their dependence on imports from China for their own security as the two countries reinforced their business partnership. At a virtual summit o...

Give Feedback