Shares of Indiabulls Housing Finance dropped about 3% in Thursday’s trade after the company told that it sold a portion of its stake in OakNorth Holdings for Rs. 440 Crore to HighSage Ventures.
The stock fell to Rs 194 on BSE (Bombay Stock Exchange). The price fell despite the company told that the sale proceeds will be accretive to the regulatory net worth & the CRAR (Capital Adequacy Ratio).
It said in a release, “The company plans to conclude a few other transactions on the partial stake sale in OakNorth Bank over the next few days. The divestments in OakNorth Bank will result in boosting CRAR and shall free up capital to grow the loan book of the company,”
OakNorth Bank was launched in September 2015. The company invested Rs 663 crore in November 2015 for a 40 per cent stake in the bank.
With the first major investment from Indiabulls Housing Finance in the year 2015, the bank started addressing the mid-market funding gap in the United Kingdom, Indiabulls said.
“OakNorth Bank became profitable in just 11 months, and within four years of operations has grown its deposits to just under £ 3 billion and has lent over £4 billion since its launch,” it added.