Mortgage lender Indiabulls Housing Finance said today (May 11) that it has decided to divest its mutual fund business to the online investment platform Groww for a sum of Rs 175 crore. According to the statement, Indiabulls Housing said that it plans to focus the management bandwidth of the firm and consolidate its capital towards the real estate asset management business, keeping in line with its asset-light strategy. (Also Read: Indiabulls Housing Finance Ties Up With HDFC To Offer Home Loans, Stock Edges Higher )
Indiabulls Housing Finance is the country's second-largest housing finance company. As per the details, the company expects the transaction with Groww to conclude by June 30, 2022.
Indiabulls Mutual Fund is one of the country's largest housing finance companies with a net worth of over Rs 16,500 crore. The firm is engaged in providing home loans and loans to small business owners. Meanwhile online investment platform Groww began its financial services in May 2016 and is now one of the leading platforms for investing in mutual funds and stocks.
Groww is backed by marquee investors such as Sequoia Capital India, Ribbit Capital, Tiger Global, and Y Combinator. It is headquartered in Bengaluru and currently serving more than 1.5 crore users across 900 cities in the country.
Additionally, the entry of a technology-focused fund house can provide more options to investors as well as low-cost investment products. Indiabulls Housing Finance is headquartered in Gurgaon and is regulated by the National Housing Bank. On Tuesday, shares of Indiabulls Housing Finance settled 1.04 per cent lower at Rs 184.90 apiece on the BSE.