Indiabulls Housing Finance lost 2.87% to Rs 603.55 at 15:22 IST on BSE, with the stock extending its recent slide after announcing acquisition of about 40% stake in UK-based OakNorth Bank for $100 million.
Meanwhile, the BSE Sensex was down 380.25 points, or 1.46%, to 25,485.60
On BSE, so far 1.97 lakh shares were traded in the counter, compared with an average volume of 1.81 lakh shares in the past one quarter.
The stock hit a high of Rs 620.90 and a low of Rs 597.10 so far during the day. The stock hit a record high of Rs 820 on 10 August 2015. The stock hit a 52-week low of Rs 401.10 on 17 December 2014.
The stock had underperformed the market over the past one month till 17 November 2015, sliding 15.06% compared with Sensex's 4.96% fall. The scrip also underperformed the market in past one quarter, sliding 21.88% as against Sensex's 7.22% decline.
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The large-cap company has an equity capital of Rs 84.12 crore. Face value per share is Rs 2.
Shares of Indiabulls Housing Finance have been on a downward journey recently, sliding 15.65% in four trading days from a recent high of Rs 715.55 on 11 November 2015. The slide was triggered after Indiabulls Housing Finance on 11 November 2015, said that the company has acquired 39.76% stake in UK-based OakNorth Bank for $100 million (Rs 660 crore), making it the lender's biggest shareholder and aiding its expansion into new business areas overseas.
Indiabulls Housing Finance said that OakNorth Bank has a successful deposit-taking franchise and this acquisition will give the company an opportunity to build credentials and track record on this crucial aspect of establishing a comprehensive liability profile for its core business. Pursuant to all applicable regulatory approvals from relevant regulators in India and the UK, viz, the Reserve Bank of India (RBI); the National Housing Bank (NHB); and the Prudential Regulation Authority (PRA) of the Bank of England, Indiabulls Housing Finance is investing $100 million for 39.76% stake in OakNorth Bank, a licensed UK commercial Bank. With 39.76% shareholding, Indiabulls will be the largest shareholder in the bank. Further, subject to regulatory approvals, Sameer Gehlaut, Chairman of Indiabulls, will be investing in his personal capacity up to 10% stake in OakNorth Bank at the same valuation.
The acquisition is a strategic investment and going forward the company maintains its guidance of 20%-25% annual growth across all financial parameters, as it has registered over the last 6 years, Indiabulls Housing Finance had said. This investment will have no impact on the company's dividend policy guidance of paying 50% of profits as dividends, the Indiabulls Housing Finance had said.
On a consolidated basis, Indiabulls Housing Finance's net profit rose 23.9% to Rs 555.54 crore on 32.7% rise in total income to Rs 2245.72 crore in Q2 September 2015 over Q2 September 2014.
Indiabulls Housing Finance is a housing finance company. The company also provides other loans, such as loan against residential properties for home improvement and to small businesses, commercial vehicle loans, and corporate loans for housing projects.
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