Indiabulls Housing Finance (IHF) on Tuesday said that the company has decided to exit mutual fund (MF) business as it does not remain a core focus area for the firm.
The parent firm (IHF) has entered into a definitive agreement with investment platform Groww to sell Indiabulls Asset Management Company (IBAMC) for Rs 175 crore.
The sale of Indiabulls Asset Management Company will be limited only to the MF part of the business, whilst the alternate investment fund (AIF) and portfolio management service (PMS) businesses will be demerged from the existing IBAMC structure.
Gagan Banga, vice chairman and MD, Indiabulls Housing Finance, said, “We have made the decision to divest our interest in the retail mutual fund business to be able to consolidate capital and provide greater focus in building the company’s real estate asset management business by way of AIF, in line with the company’s asset light strategy.”
“Indiabulls Housing Finance will continue to build on its pedigree as a leading lender in the market and our AIF-driven real estate asset management business will complement our core business perfectly,” he added.
Indiabulls Housing Finance had reported a sequential increase of 2% in its net profit at Rs 329 crore during the December quarter. Its net interest income (NII) improved 8% sequentially to Rs 809 crore during the December quarter. IBH had raised total funding of Rs 28,119 crore till Q3FY21 during the financial year. The capital adequacy ratio of the lender remained at 30.5% during the December quarter.