Japanese conglomerate SoftBank has said that it will invest Rs 2,800 crore in Indiabulls Housing Finance's associate OakNorth bank, a commercial bank based in United Kingdom.
"Softbank is investing Rs 2,800 crores of equity capital in its associate OakNorth bank, a commercial bank in UK," Indiabulls Housing Finance said in a filing to the Bombay Stock Exchange.
With this investment the total equity capital in the bank will be Rs 7,000 crores, Indiabulls Housing Finance said in the exchange filing.
OakNorth bank is a new bank in Europe leveraging technology tools for fast and efficient disbursals to the SME sector wherein the entire deposits for the bank come by way of digital channels, the company said.
According to the company, the bank has no physical branches.
"The current loan book of OakNorth bank is Rs 21,390 crores and the bank has no delinquencies as on date."
In September last year, OakNorth had closed a USD 100 million funding round, which valued it at USD 2.3 billion at the time.
OakNorth was seeded by Indiabulls Housing in October 2015 with Rs 650 crores to own a 40 per cent controlling stake in the bank. Last year, Indiabulls sold a part of its holding to Government of Singapore for Rs 900 crores. The remaining value of Indiabulls stake in the bank is Rs 3,000 crore, if we go by the price at which SoftBank is investing.
Following the development, shares of Indiabulls Housing Finance closed at Rs 614.15 apiece, down 5.91 per cent, on the BSE.
Edited by Chitranjan Kumar