Indiabulls Ventures may weigh options to recast, reverse merge microfinance arm

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26 Aug, 2025 12:21

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Indiabulls Ventures, one of the three listed entities of the Sameer Gehlaut-promoted group, is looking at ways to sharpen focus, and maximise returns in its microfinance arm IVL Finance, an official familiar with the development told Moneycontrol. Among the options on the table are a restructuring of the operations that could even take the shape of a reverse merger with the parent company at a later date, the official said.

IVL Finance is a wholly-owned non-banking finance company of Indiabulls Ventures. It was earlier known as Shivshakti Financial Services.

“The lending business undertaken by IVL Finance is growing rapidly. At some point of time, the management would look to maximise shareholder value from the arm. There could be a restructuring of the operations which could even result in a reverse merger with the parent,” the official said. He also did not rule out an initial public offering of the microfinance company, adding, a separate listing of the operations, if considered, would not happen for at least two years.

“All options are there right now. The management is yet to take a call on which one to adopt,” he said.

IVL Finance is into lending Rs 50,000 to Rs 15 lakhs in consumer loans like those for cars and houses. It also extends business loans to micro, small and medium enterprises. Apart from retail lending, Indiabulls Ventures is also looking to grow its asset reconstruction business. The parent company last month secured shareholder approval to raise Rs 3,000 crores via a qualified institutional placement for growing the twin businesses. Bulk of this will go into growing the lending business, the official said.

The official said the company was experiencing tremendous growth in its businesses, particularly those of IVL Finance. Indiabulls Ventures posted a consolidated net profit of Rs 102.25 crores in 2016-17, and the aim was to take it to Rs 250 crores in the current financial year, the official said.

He said IVL Finance, a new entrant in the consumer finance business, was largely focused on using digital channels for growth. It recently a launched an Aadhaar-based app called ‘Dhani’ for instant loan approval on mobiles.