Indiabulls Housing Finance said on Thursday it has sold a portion of its stake in OakNorth Holding Ltd to HighSage Ventures LLC for Rs 440 crore.
The sale proceeds will be accretive to regulatory net worth and capital to risk assets ratio (CRAR) of the company, it said in regulatory filings at stock exchanges.
"The company plans to conclude few other transactions on the partial stake sale in OakNorth Bank over the next few days. The divestments in OakNorth Bank will result in boosting CRAR and shall free up capital to grow the loan book of company," said Indiabulls Housing Finance.
Financial Times ranked OakNorth Bank on top across all sectors in its 'FT 1000 -- Europe's Fastest Growing Companies 2020' rankings.
HighSage Ventures LLC is a Boston-based investment firm with an investor network spanning the venture capital, private equity and public equity communities.
OakNorth Bank was launched in September 2015 and Indiabulls Housing Finance had invested Rs 663 crore in November 2015 for a 40 per cent stake in the bank.
With first major investment from Indiabulls Housing Finance in 2015, the bank started addressing the mid-market funding gap in the United Kingdom, a business similar to loans against property business that Indiabulls Housing Finance has done very successfully.
In the highly competitive and regulated market of United Kingdom, OakNorth Bank became profitable in just 11 months. Within four years of operations, it has grown its deposits to just under three billion pounds and has lent over four billion pounds since its launch.
