Indiabulls to rejig biz, demerge broking arm

Indiabulls Financial Services today said it will re-organise its business, which will include the demerger of its brokerage services - Indiabulls Securities.

According to an official release issued by the company, the board of directors has considered the proposal entailing the demerger of Indiabulls Securities on a going concern basis and plans to list the demerged entity Indiabulls Financial.

"Indiabulls expects that the restructuring initiatives would unlock significant value and also streamline the operations and ownership structure," the release said.

Additionally, it has also proposed the amalgamation of the entire business and undertaking of Indiabulls Credit Services with the company, it added.

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

The board has appointed 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 it at a later date.