Indiabulls to demerge broking arm as it restructures business

Mumbai: Indiabulls Financial Services will demerge its brokerage services — Indiabulls Securities Ltd — in a proposed re-organisation of business. The board of directors of the company has considered the proposal, Indiabulls Financial informed the Bombay Stock Exchange (BSE).

Indiabulls also proposes to consider alternatives for restructuring the company, including amalgamation of the entire business and undertaking of Indiabulls Credit Services Ltd with the company.

Additionally, the company will consider the transfer by way of a demerger of the undertakings, business, activities and operations of the company pertaining to provision of broker dealer services, in particular, Indiabulls Securities Ltd, on a going concern basis, and seek permission to list the resulting entity.

Separately the board noted the proposal for the acquisition of equity shares of Indiabulls Housing Finance Ltd (IHFL), held by certain minority investors. The board has authorised certain persons to negotiate and finalise the terms and conditions on which the company shall acquire the equity shares of IHFL.

The company expects that the restructuring initiatives would unlock significant value and also streamline the operations and ownership structure of the company. The board has appointed certain advisers and has authorised a committee to prepare and present a draft proposal and related documents for the restructuring of the company to be placed before and approved by the board at a later date.

The board will make its final decision in due course regarding the restructuring exercise upon receiving the recommendations or the authorised committee and obtaining the required professional advice, the company said in the statement.