On Sunday, November 29, 2020, Indiabulls Housing Finance Ltd (IHFL) – one of the big global mortgage lending, underwriting, and financing companies announced that it has a portion of its stake in OakNorth Holdings Ltd and consecutively raised approximately Rs. 93 crores.
OakNorth Holding Ltd is the parent company of all the subsidiaries under its group, and The OakNorth Bank Ltd is the wholly-owned subsidiary of the OakNorth parent company. In September 2015, OakNorth Bank Ltd was launched, and post its launch in November 2015; the Indiabulls Housing Finance as investment had bought 40 percent of the stake in the bank that was worth Rs. 663 crore of investment.
Earlier, in the third quarter of 2020, i.e., in September, Indiabulls Housing Finance had sold a fraction of its stake in OakNorth Holding Ltd to HighSage Ventures LLC for Rs. 440 crores. Before Sunday’s announcement, Indiabulls Housing Finance again in October 2020 had sold its additional stake in OakNorth Bank to Riva Capital Partners V, LP, USA, for Rs. 441 crores after its fraction stake sale in September month. Therefore, from the third quarter of 2020 to till now, with its recent stake sale, IHFL has raised in all a total of Rs. 2,670 crore in the form of equity in September, October, and November 2020, adding to its regulatory equity capital.
This bifurcation of the said raised funds is some portion of the fund through Qualified Institutional Placement (QIP) of Rs. 683 crores as well as the rest of the funds of Rs. 1,987 crores through its stake sale in OakNorth Group and its subsidiaries. In its regulatory filing announcement, IHFL stated that the sale proceeds from November’s stake sale would be accretive to the regulatory Net Worth and in the Capital to Risk (Weighted) Assets Ratio CRAR in the books of accounts of the company.
On Friday, November 27, 2020, IHFL shares were last traded at the closure of Rs.187.05 compared to the earlier day’s closing of Rs. 185.70. And the stock had hit an intraday high of Rs. 192 and intraday low of 180.70 per share.