Indiabulls HF divests mutual fund business to Groww for Rs 175 crore ANI | Updated: May 11, 2021 17:04 IST
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.
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.
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.
Groww, a fast-growing technology-oriented investment platform, has signed an agreement with Indiabulls Housing Finance (IBHFL) to acquire Indiabulls Asset Management Company and Trustee Company for consideration of Rs 175 crore (including cash and cash equivalents of Rs 100 crore). With this acquisition, Groww will become one of the first fintech companies to enter the Rs 32-trillion asset management space.
Groww has more than 15 million customers and offers services like mutual fund and stock market investing. The transaction is subject to market regulator Securities and Exchange Board of India (Sebi) and other regulatory approvals. In a release, Groww said Sebi’s recent change in sponsorship criteria for fintech companies has enabled it to enter into the asset management space.
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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.