Indiabulls Housing crashes 18.5% on UK bank deal

Mumbai: Shares of Indiabulls Housing Finance on Friday crashed by 18.5 percent after the company said it will acquire a 39.76 percent stake in the UK’s OakNorth Bank for USD 100 million (about Rs 661 crore).

The stock tumbled 17.46 percent to Rs 590.60 on BSE. At NSE, shares of the company nosedived 18.52 percent to Rs. 584.

The announcement was made on Thursday when the domestic bourses were closed for Diwali. The company said the acquisition will help it chart a roadmap to a deposit-taking franchise.

“Pursuant to all applicable regulatory approvals from relevant regulators in lndia and the UK... Indiabulls Housing Finance Ltd’ is investing USD 100 million for 39.76 percent stake in OakNorth Bank, a licensed UK commercial Bank... the company will be the largest shareholder in the bank,” Indiabulls Housing said in a regulatory filing.

It further said: “Sameer Gehlaut, Chairman of the company, will be investing in his personal capacity up to 10 percent stake in OakNorth Bank at the same valuation.”