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Indiabulls Shares in Focus After Fintech Cloud Acquisition
Indiabulls plans to buy most of a company called Fintech Cloud.
It will pay ₹1,050 crore for a 70% stake.
This means Fintech Cloud would be valued at ₹1,500 crore in total.
Instead of paying entirely in cash, Indiabulls will issue new shares to the sellers.
Indiabulls will also be able to appoint most of Fintech Cloud’s directors.
Fintech Cloud makes technology that helps financial companies provide and manage loans.
The deal would give Indiabulls an entry into the fintech sector.
The transaction still needs several approvals and may take 9-12 months.
Indiabulls agreed to acquire a 70% stake in Fintech Cloud for ₹1,050 crore, implying a ₹1,500 crore valuation.
The acquisition will be carried out through a National Company Law Tribunal-approved scheme, giving Indiabulls control of Fintech Cloud’s board.
Fintech Cloud provides technology solutions for regulated entities and supports NBFCs with loan origination, underwriting and servicing.
Indiabulls will issue up to 21 crore fully paid-up shares to the sellers as consideration for the acquisition.
The transaction requires regulatory and shareholder approvals and is expected to take 9-12 months to complete.
- Who
- Indiabulls and Fintech Cloud Private Ltd are involved in the proposed transaction.
- What
- Indiabulls agreed to acquire a 70% stake in Fintech Cloud for ₹1,050 crore.
- Where
- The announcement was made through an exchange filing; no physical location was specified.
- When
- The agreement was announced on Friday, September 11, with Indiabulls shares expected to be in focus on Tuesday, September 15.
- Why
- Indiabulls said the acquisition would mark its entry into fintech by providing technology solutions to NBFCs.
Key facts
- Acquisition stake
- 70% of Fintech Cloud’s issued, subscribed and paid-up equity share capital
- Consideration
- ₹1,050 crore
- Implied valuation
- ₹1,500 crore for Fintech Cloud
- Share issuance
- Up to 21 crore fully paid-up Indiabulls shares
- Friday closing price
- ₹25.89 per share on BSE, after a 5% rise
- Expected completion
- Within 9-12 months, subject to approvals
- Required approvals
- National Company Law Tribunal, Securities and Exchange Board of India, stock exchanges and other applicable regulatory and shareholder clearances
Sources
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