Indiabulls Housing crashes 18.5% on UK bank deal

Shares of Indiabulls Housing Finance today crashed by 18.5 per cent after the company said it will acquire a 39.76 per cent stake in the UK's OakNorth Bank for USD 100 million (about Rs 661 crore).
The stock tumbled 17.46 per cent to Rs 590.60 on BSE.
At NSE, shares of the company nosedived 18.52 per cent to Rs 584.
The announcement was made yesterday when the domestic bourses were closed for Diwali.
The company said the acquisition will help it chart a roadmap to a deposit-taking franchise.
"Pursuant to all applicable regulatory approvals from relevant regulators in lndia and the UK... Indiabulls Housing Finance Ltd' is investing USD 100 million for 39.76 per cent stake in OakNorth Bank, a licensed UK commercial Bank... The company will be the largest shareholder in the bank," Indiabulls Housing said in a regulatory filing yesterday.

It further said: "Sameer Gehlaut, Chairman of the company, will be investing in his personal capacity up to 10 per cent stake in OakNorth Bank at the same valuation.