Gehlaut offloads 11.9% stake in Indiabulls HFC; to resign by March-end

Sameer Gehlaut, the promoter of Indiabulls Housing Finance (IHFL), has sold 11.9 per cent in the company in numerous block deals on Thursday to over 10 entities. The combined value of the transactions is estimated at around Rs 1,450 crore, and the average price is around Rs 264 a share. He will also be stepping down from the board by the end of the current financial year (2021-22, or FY22) and will complete the de-promoterisation of the company with requisite approvals.

After Thursday’s transactions, Gehlaut still holds 9.8 per cent in the company and he intends to hold this stake to participate in the future growth story of the company. 

“I will be resigning from the board of the company by the end of the current financial year ending March 31, 2022, and will be completing the process of de-promoterisation of the company with requisite approvals,” he said. 

Gehlaut will continue as chief executive officer (CEO) of Dhani Services, a company that was demerged from IHFL. “I remain very excited for the growth prospects of Dhani Services, where, as CEO, I am very focused on building a world-class financial technology and digital health platform,” he said.

Among entities that bought Gehlaut’s stake include BREP Asia II Indian Holding Company (2.27 per cent), Abu Dhabi Investment Authority (1.25 per cent), Tosca (1.26 per cent; across three funds), Invesco Mutual Fund (1.24 per cent; across four funds), and Quant Mutual Fund (0.89 per cent; across six funds). IMF, and funds of HSBC, Morgan Stanley, and GMO were also among buyers.

Shares of the housing finance company closed 4 per cent lower at Rs 254.3 on the BSE.

Gehlaut held 21.69 per cent in the company through stakes held in individual capacity — Sameer Gehlaut Trust and Inuus Infrastructure.

IHFL rejigged its business after the Infrastructure Leasing & Financial Services fiasco and was focusing more on its co-lending business. The loan book of the company has shrunk from Rs 1.23 trillion in 2017-18 to Rs 65,438 crore as of the June quarter of FY22. “Around two years ago, we set a vision for IHFL of making it a best-in-class, professionally-run, and innovative financial institution with a fortress-like balance sheet, strong liquidity, and masterclass corporate governance,” said Gehlaut.

Gagan Banga will continue to lead the company as vice-chairman and managing director of the company. IHFL is the third-largest housing finance company, after HDFC Ltd and LIC Housing Finance. “I am very grateful to all the stakeholders of IHFL for this wonderful journey that started 21 years ago in a small 300 square feet office. I wish Banga and the management the very best in the years ahead. I have great confidence in the professionalism of this team,” said Gehlaut.

The mortgage lender had posted a net profit of Rs 286 crore in the September quarter, down 11 per cent from the corresponding period last year, due to a decline in its loan book. The company had disbursed Rs 325 crore in September through its co-lending tie-ups. It intended to scale that up to Rs 500 crore of monthly disbursements by December and Rs 800 crore of monthly disbursements by March 2022. It has seven co-lending partners.

“Since it went public in September 2004 at Rs 19 per share, IHFL has been a fabulous success story with 25 per cent compound annual growth rate returns over the past 17 years, including receipt of dividends and shares of other demerged companies over the years,” added Gehlaut.