Indiabulls Housing further offloads stake in OakNorth for Rs 630 crore

OakNorth Holding Ltd is the parent company of the UK bank OakNorth Bank. OakNorth Bank was launched in September 2015 and Indiabulls had invested Rs 663 crore in November 2015 for a 40 per cent stake in the bank.

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In November 2017, the company recouped its investment by selling about 10 per cent stake to the Government of Singapore's investment arm GIC for Rs 770 crore.
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Mumbai: Indiabulls Housing Finance said on Tuesday it has further sold a portion of its stake in OakNorth Holding Ltd to TEMF, a fund managed by Toscafund Asset Management for around Rs 630 crore.

OakNorth Holding Ltd is the parent company of the UK bank OakNorth Bank. OakNorth Bank was launched in September 2015 and Indiabulls had invested Rs 663 crore in November 2015 for a 40 per cent stake in the bank.

In November 2017, the company recouped its investment by selling about 10 per cent stake to the Government of Singapore's investment arm GIC for Rs 770 crore.


In a late evening release, the housing finance company said the sale proceeds will be accretive to the regulatory net worth and the CRAR of the company. CRAR is the capital adequacy ratio, also known as capital-to-risk weighted assets ratio (CRAR).

With the latest stake sale, it has raised a total of Rs 1,832 crores as fresh equity in September. It raised Rs 683 crore through qualified institutional placement (QIP) and Rs 1,149 crore through sale of stake in OakNorth.

Toscafund Asset Management is a multi-asset management fund with approximately $4 billion of assets under management
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Ahead of the announcement, Indiabulls Housing closed 2.03 per cent lower at Rs 152.05 on the BSE, while Sensex closed flat at 37,793.

The stock has been eroding in value in recent times, and is down more than 51 per cent year to date. It had shed more than 32 per cent over the last one month.



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