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The Indiabulls Group

Indiabulls
The Indiabulls Group
  • Indiabulls Group is an Indian conglomerate founded by Sameer Gehlaut in 1999. It went public in 2005, and operates in sectors like housing finance, real estate and wealth management.
  • As of 2015, Indiabulls Group had 7000 employees, and a net worth of over ₹19,000 crore.
  • Headquartered in Gurgaon, Indiabulls is one of the top dividend paying groups amongst the Indian listed promoter owned group/companies.

Indiabulls Housing Finance-growing at a fast pace

Fact
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Indiabulls Housing Finance has seen its assets under management (AUM) grow by 38% over the past five years, making it India's third largest housing finance company.

Indiabulls stock plummets on UK bank deal

13 Nov 2015
Indiabulls stock plummets on UK bank deal
  • After Indiabulls announced its planned acquisition of 39.76% stake in OakNorth, its shares crashed.
  • Its stock dived 17.46% intra-day to ₹590.60 on the Bombay Stock Exchange.
  • At the National Stock Exchange, Indiabulls shares fell 18.52% intra-day to ₹584.
  • At the end of the day, Indiabulls' shares closed, down by 10.02% on the BSE at ₹643.85, and down by 10.22% on the NSE at ₹643.50.

Indiabulls buys 39.76% stake in OakNorth Bank

14 Nov 2015
Indiabulls buys 39.76% stake in OakNorth Bank
  • Mumbai-based Indiabulls Group has bought a 39.76% stake in UK-based OakNorth Bank, a lender to small businesses and enterprises.
  • The deal was valued at £66 million and boosted OakNorth's capital base to over £85 million.
  • "This is a massive vote of confidence in OakNorth, and this major investment will enable us to accelerate and expand our ambitious growth plans," said OakNorth co-founder Rishi Khosla.

The timing of the acquisition

Fact
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Indiabulls' acquisition of 39.76% stake in OakNorth Bank comes just after Prime Minister Narendra Modi's visit to the United Kingdom which is supposed to bring $14 billion worth of business deals.

Analysts' opinions about the deal

Analysis
Analysts' opinions about the deal
  • OakNorth obtained its licence in March 2015 and has a small loan book of £25-30 million and a small deposit base of £10-15 million.
  • In that light, analysts believe Indiabulls' £66 million acquisition is extravagant.
  • Neither do they believe that the acquisition will make it easier for Indiabulls Housing Finance to get the RBI's approval to become a deposit-taking non-banking financial company (NBFC).