Indiabulls Housing Finance falls 3% on report of realty biz exit
The stock gained 19 percent in last one month, but lost 38 percent in last one year. It was quoting at Rs 837, down Rs 21.90, or 2.55 percent on the BSE, at 11:26 hours
April 09, 2019 / 02:34 PM IST
Indiabulls Housing Finance shares fell 3.5 percent intraday on April 9 after a media report said Sameer Gehlaut will exit realty biz to focus on financial services business.
The stock gained 19 percent in last one month, but lost 38 percent in last one year. It was quoting at Rs 837, down Rs 21.90, or 2.55 percent on the BSE, at 11:26 hours IST.
The stock declined 5 percent in the previous session on news of merger of Lakshmi Vilas Bank with Indiabulls Housing Finance.
Sameer Gehlaut, chairman of the real estate group, expressed his intent to pick financial services over real estate.
"If RBI wants that I should give up real estate, I will give it up. It is not needed because the regulations are clear but, if they insist, I am happy to do that because my heart and passion lie only in financial services. I am willing to give up real estate business to pursue financial services," Sameer Gehlaut, chairman of the real estate group told The Economic Times on April 9.
On the other hand, Indiabulls Real Estate rallied nearly 12 percent.
Lakshmi Vilas Bank (LVB), on April 5, approved the merger with Indiabulls Housing Finance (IBH). LVB shareholders will get 14 shares of Indiabulls Housing Finance for every 100 shares held in bank.
The merged entity's net worth will be Rs 19,472 crore, with 14,302 employees and a loan book of Rs 1.23 lakh crore. The gross non-performing loan (NPL) ratio will be at 3.5 percent and Net NPL ratio at 2 percent.
The merger is subject to approval from shareholders, Competition Commission of India (CCI), National Housing Bank (NHB) and National Company Law Tribunal (NCLT), Banga said.