Indiabulls to acquire 70% stake in Fintech Cloud for ₹1,050cr
What's the story
Indiabulls has announced an agreement to acquire a 70% stake in Fintech Cloud Private Ltd for ₹1,050 crore. The transaction values the target company at ₹1,500 crore. The acquisition will be conducted through a scheme under the National Company Law Tribunal (NCLT), with Indiabulls also taking control of Fintech Cloud's board.
Strategic move
A look at the deal
Under the proposed deal, Indiabulls will acquire 70% of Fintech Cloud's issued, subscribed, and paid-up equity share capital.
The company also plans to appoint most directors on the target's board with immediate effect.
This acquisition marks Indiabulls's entry into the fintech segment through a business that provides technology solutions to non-banking financial companies (NBFCs).
Share issuance
Transaction subject to applicable pricing regulations
The ₹1,050 crore consideration for the deal will be settled through the issuance of up to 21 crore fully paid-up equity shares of Indiabulls.
These shares will be issued to shareholders holding the 70% stake in Fintech Cloud under an NCLT-approved Scheme of Amalgamation.
The transaction is subject to applicable pricing regulations, including SEBI's Issue of Capital and Disclosure Requirements (ICDR) regulations.
Financials
Fintech Cloud's financials and acquisition details
Fintech Cloud, incorporated on January 11, 2021, has a presence in India.
The company reported no revenue in FY24 and FY25 but generated ₹133.77 crore in FY26 with a profit before tax (PBT) of ₹30.31 crore.
The proposed acquisition does not constitute a related-party transaction and requires NCLT and SEBI/stock exchanges approval, along with other applicable regulatory and shareholder approvals.