Indiabulls Housing Gets CCI Approval to Divest Its Mutual Fund Business to Groww, Real Estate News, ET RealEstate
The company’s wholly owned subsidiaries, Indiabulls Asset Management Company Ltd (IMACL) and Indiabulls Trustee Company Ltd (ITCL) had reached a definitive transaction agreement in May this year with Nextbillion Technology (Groww) for the divestiture of the fund business. mutual funds carried out by these two entities.
“In addition, the Indian Competition Commission (ICC) has, in accordance with a communication letter dated September 9, 2021, approved the transaction,” IBHFL said in a regulatory filing.
The divestiture of the mutual fund business is intended to focus on its retail real estate asset management business as this is not the core business of the company.
Groww started its financial services business in May 2016. It is currently one of the leading technology platforms for investing in stocks and mutual funds.
Based in Bengaluru, it is backed by renowned investors such as Tiger Global, Sequoia Capital India, Y Combinator and Ribbit Capital.
Groww serves over 1.5 crore of users in over 900 cities across India.
The transaction to separate from the mutual fund business by Indiabulls Housing is expected to close by June 30, 2022.
After the agreement is concluded, Indiabulls Housing will cease to own shares and its exclusive control over IAMCL and ITCL.
As of March 31, 2020, mutual fund income represented 0.03% of the consolidated income of the housing finance company.