CCI approves Indiabulls Housing Finance – Groww deal

Realty24 Live

3 years ago

CCI has given approval to Indiabulls Housing Finance (IBHFL) to sell its mutual fund business to Groww. Furthermore, the deal is being finalized at Rs. 175 crore.

The company’s wholly own subsidiaries are Indiabulls Asset Management Company Ltd (IMACL) as well as Trustee Company Ltd (ITCL). These have entered into an absolute transaction agreement in May this year with Nextbillion Technology (Groww). Furthermore, It is to divest the mutual fund business carried out by these two entities.

“On this agreement, the Competition Commission of India has approved the deal in a communication dated 9 September 2021,” IBHFL said in a regulatory notice. The company has said that the objective behind the sale of the mutual fund business is to focus on its company’s retail real estate asset management business. Mutual funds are not his main business area.

The divestment of the mutual fund business is to focus on its retail estate asset management business. As it is not the core focus area of the company.

Currently, Groww is one of the leading tech platforms for investing in mutual funds as well as stocks. Furthermore, Groww started its financial services business in May 2016. Backed up by marquee investors like Tiger Global, Sequoia Capital India, Y Combinator and Ribbit Capital. It is Headquartered in Bengaluru. Most importantly, Groww serves over 1.5 crore users in more than 900 cities across India.

The diversion of the mutual fund business by Indiabulls Housing is expected to be closed on or before June 30, 2022.

After the conclusion of the deal, Indiabulls Housing will cease to hold any equity shares and its sole control over IAMCL and ITCL.

As of March 31, 2020, the mutual fund revenue constituted 0.03 percent of the consolidated revenue of the housing financier company.