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.
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Indiabulls HF divests mutual fund business to Groww
ANI
11 May 2021, 22:03 GMT+10
Mumbai (Maharashtra) [India], May 11 (ANI): Indiabulls Housing Finance said on Tuesday it has decided to divest its mutual fund business to investment platform Groww for Rs 175 crore.
Indiabulls Mutual Fund is one of India s largest housing finance companies having a net worth of over Rs 16,500 crore. The company is engaged in providing home loans and loans to small business owners.
Indiabulls Housing said it plans to focus management bandwidth and consolidate capital towards real estate asset management business in line with its asset-light strategy.
The company expects the transaction with Groww to conclude by June 30, 2022.
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Online investment platform Groww on Tuesday announced that it will be acquiring Indiabulls Mutual Fund for a total consideration of Rs 175 crore. The digital platform will acquire Indiabulls Asset Management Company (IBAMC) and the trustee company for Rs 175 crore, which includes a cash and equivalent component of Rs 100 crore, an official statement said, adding that the transaction is subject to regulatory approvals. The Alternate Investment Fund (AIF) and Portfolio Management Service (PMS) businesses will be demerged from the existing IBAMC structure, and remain under
Indiabulls Housing Finance, it said. The announcement comes months after capital markets regulator Sebi had allowed digital platforms like fintechs to enter the mutual funds business and Groww becomes the first fintech to enter the asset management space.
Groww to acquire Indiabulls MF for ₹175 cr
May 12, 2021
Lalit Keshre, CEO and Co-founder, Groww×
Indiabulls Housing Finance will retain the Alternate Investment Fund
Groww, one of the leading investment platforms, has signed a definitive agreement with Indiabulls Housing Finance to acquire Indiabulls Mutual Fund for ₹175 crore (including cash and cash equivalent of ₹100 crore).
The sale of Indiabulls Asset Management Company will be limited only to the Mutual Fund part of the business, while the Alternate Investment Fund will be demerged and retained by Indiabulls Housing Finance. It plans to grow the Real Estate Asset Management business through AIF structures in line with its asset-light strategy.