Groww to Buy Indiabulls MF Business
Indiabulls Housing Finance has executed definitive transaction document to divest its mutual fund business to Nextbillion Technology, part of Groww Group ('Groww') for about Rs 175 crore. Indiabulls Housing Finance is the sponsor of Indiabulls Mutual Fund. Indiabulls Housing 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. The company plans to grow this business in partnership with global player(s). The mutual fund business does not remain a core focus area for Indiabulls Housing Finance. Therefore, the company has decided to focus management bandwidth and consolidate capital towards its core lending business and divest out of the mutual fund business. Company along with its wholly owned subsidiary companies Indiabulls Asset Management Company (IAMCL) and Indiabulls Trustee Company, Trustee of IAMCL, (ITCL) has executed definitive transaction document with 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 Rs 175 crore, subject to necessary approvals. The transaction is expected to be concluded on or before 30 June 2022. Post conclusion of the transaction, the company will cease to hold any equity shares and its sole control over IAMCL and ITCL. As on 31 March 2020, Indiabulls Housing's revenue from mutual fund business was Rs 4.16 crore, which constituted 0.03% of the consolidated revenue of the company. Indiabulls Housing Finance provides home loans and loans to small business owners. Its consolidated net profit tumbled 40.3% to Rs 329.32 crore on a 25.4% fall in total income to Rs 2514.70 crore in Q3 FY21 over Q3 FY20.
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