Indiabulls Housing Finance slumps on plans to buy stake in OakNorth Bank

Shares of Indiabulls Housing Finance have slumped over 11% to Rs 639 on the BSE after the company announced yesterday that it will acquire a 39.76% stake in the UK's OakNorth Bank for USD 100 million (about Rs 661 crore). 

The company said the acquisition will help it chart a roadmap to a deposit-taking franchise.

"Pursuant to all applicable regulatory approvals from relevant regulators in lndia and the UK... Indiabulls Housing Finance Ltd' is investing USD 100 million for 39.76 per cent stake in OakNorth Bank, a licensed UK commercial Bank... The company will be the largest shareholder in the bank," Indiabulls Housing Finance said in a regulatory filing.

The stock opened at Rs 713 and touched an intra-day low of Rs 620. A combined 3.5 million shares changed hands on the BSE and NSE till 10:20 AM.