Indiabulls Housing unlikely to gain much from stake sale in realty arm

At best, it could improve the company's liquidity situation

The Indiabulls group’s decision to sell 14 per cent stake in Indiabulls Real Estate is expected to help its financing arm, Indiabulls Housing Finance. 

The deal comes at a time when the non-banking lending space is grappling with liquidity issues. “The stake sale is likely to improve leverage and give liquidity support to Indiabulls Housing. Incremental disbursements in the retail and non-retail segments, and managing liquidity, are key triggers for the stock,” says Shubhranshu Mishra, analyst at Bank of Baroda Capital markets. 

The move, however, may not lead to significant gains for the stock (down marginally on Friday), given multiple