Indiabulls Housing gets CCI nod to divest mutual fund business

Indiabulls Housing Finance on Friday announced that it received the approval of Competition Commission of India (CCI) to divest its mutual fund business to Groww for Rs 175 crore.

Sep 13, 2021 09:09 IST capital market

On 11 May, the housing finance company announced that it executed definitive transaction document to divest its mutual fund business to Nextbillion Technology, part of Groww Group (Groww) for about Rs 175 crore. The company along with its wholly owned subsidiary companies Indiabulls Asset Management Company (IAMCL) and Indiabulls Trustee Company, Trustee of IAMCL, (ITCL) has executed definitive transaction document with Groww, to divest its entire stake in mutual fund business, being carried out by IAMCL & ITCL to the Groww at an aggregate purchase consideration of Rs 175 crore, subject to necessary approvals.

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 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.

Groww commenced its financial services business in May 2016 and currently is one of the leading tech platforms for investing in stocks and mutual funds. Nextbillion Technology is a SEBI registered stock broker, depository participant and AMFI registered mutual fund distributor.

The transaction is expected to be concluded on or before 30 June 2022. Post conclusion of the transaction, the company will cease to hold any equity shares and its sole control over IAMCL and ITCL.

Shares of Indiabulls Housing Finance were trading 0.11% lower at Rs 227.15 on BSE.

Indiabulls Housing Finance provides home loans and loans to small business owners.

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