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

Dhirendra Tripathi Moneycontrol News

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.