Indiabulls Housing Finance offloads stake in OakNorth Holdings for ₹440 crore1 min read . Updated: 10 Sep 2020, 04:25 PM IST
- The divestment in OakNorth Bank will result in boosting CRAR and shall free up capital to grow the loan book of Indiabulls Housing Finance
Mumbai: Indiabulls Housing Finance Ltd on Wednesday said that it sold a portion of its stake in OakNorth Holdings Ltd to HighSage Ventures LLC for ₹440 crore.
"The sale proceeds will be accretive to the regulatory net worth and the capital to risk-weighted assets ratio (CRAR) of the Company", the company said in a notice to exchanges.
The company also said that it plans to conclude few other transactions on the partial stake sale in OakNorth Bank over the next few days. The divestment in OakNorth Bank will result in boosting CRAR and shall free up capital to grow the loan book of the company, it added.
The firm had invested ₹663 crore in November 2015 for a 40% stake in the bank. Within two years of this, in November 2017, the company recouped its investment by selling approximately 10% of the bank to the government of Singapore-owned investment arm GIC for ₹770 crore
Founded in 2015, OakNorth Bank has grown its deposits to just under £3 billion and its loan book to over £4 billion, the company added.
On Wednesday, Indiabulls Housing launched a qualified institutional placement offering to raise up to ₹735 crore.
The company intends to use the proceeds from the share sale to augment its capital adequacy ratio and maintain liquidity to meet funding requirements of its business activities, it said in an offer document filed with the exchanges.