Indiabulls Housing Finance sells part stake in OakNorth Holding for Rs 440 crore

By: |
September 11, 2020 4:15 AM

The sale proceeds would be accretive to the regulatory net worth and the capital adequacy ratio of the company, Indiabulls Housing Finance said in a regulatory filing.

The capital adequacy ratio of lender stood at 27.94% at the end of June quarter.The capital adequacy ratio of lender stood at 27.94% at the end of June quarter.

Indiabulls Housing Finance on Thursday said that it has sold a part of its stake in OakNorth Holding to HighSage Ventures for Rs 440 crore.

The sale proceeds would be accretive to the regulatory net worth and the capital adequacy ratio of the company, Indiabulls Housing Finance said in a regulatory filing.

The capital adequacy ratio of lender stood at 27.94% at the end of June quarter.

“The company plans to conclude few other transactions on the partial stake sale in OakNorth Bank over the next few days, “ the company said in the filing.

The divestments will result in boosting capital to risk weighted assets ratio (CRAR ) and shall free up capital to grow the loan book of the company, it added.

HighSage Ventures is a Boston-based investment firm with an investor network spanning the venture capital, private equity and public equity communities and OakNorth Holding is parent company of United Kingdom (UK) based OakNorth Bank.

Indiabulls Housing Finance board had earlier taken shareholders’ approval on July 29 for raising around Rs 2,200 crore ($300 million) by issuing securities through qualified institutional placement (QIP) or through foreign currency convertible bonds (FCCBs) during the course of the next one year.

The housing finance company posted a 65.5% year-on-year decline in net profit to Rs 272.84 crore in the June quarter.

Similarly, net interest income (NII) declined 28.7% year-on-year to Rs 701 crore during June quarter.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1FSSAI ban on junk food sale around schools: 2 cr shops to lose over 75% business, traders tell govt
25% import duty on open cell used in TV manufacturing from October 1
3Vistara sees ‘steady return in demand’; to increase daily flights to 100 by month-end: CEO Leslie Thng