Indiabulls Housing Finance Ltd sells one-third stake in OakNorth Bank for Rs. 770 crores
Indiabulls Housing Finance Ltd (IHFL) has sold one-third of its stake in OakNorth Bank Ltd., i.e. 10% of the bank to Government of Singapore owned investment arm GIC for Rs. 770 crores. IHFL had invested Rs. 663 crores in November 2015 for a 40% stake in the bank. With this partial divestment IHFL has recovered its entire investment in OakNorth Bank made 2 years ago. The balance investment of IHFL in OakNorth Bank Ltd. is worth Rs. 1510 crores at current valuation. Post this sale, Indiabulls continues to be the single largest shareholder in the UK bank with two nominees on the board. Prior to this transaction, OakNorth bank had secured an investment of USD 203 million from three leading international investors – The Clermont Group, Toscafund and Coltrane for a 76% stake, valuing the bank upward of $ 1.2 billion.
Founded in 2015 to address the mid-market funding gap in the UK, a highly competitive and regulated market, OakNorth Bank became profitable after just 11 months, and within two years of operations has grown its loan book to over 800 million Pounds. It has recently won City A.M.'s UK's "Bank of the Year" award in the midst of stiff competition from the likes of JP Morgan, Metro, TSB and Monzo. And now this stake acquisition by GIC, Singapore further reaffirms investors' faith in the long term potential of this rising challenger bank in UK's financial firmament. GIC, the sovereign wealth fund of Singapore, is known to be a disciplined long-term investor, with well over USS100 billion of assets in more than 40 countries worldwide.
Shares of Indiabulls Housing Finance Ltd was last trading in BSE at Rs.1186 as compared to the previous close of Rs. 1196.85. The total number of shares traded during the day was 111845 in over 2618 trades.
The stock hit an intraday high of Rs. 1205.2 and intraday low of 1164. The net turnover during the day was Rs. 132918499.
Source: Equity Bulls