Farallon Capital to invest in Indiabulls subsidiaries

Indiabulls and the San Francisco-based Farallon Capital will invest Rs 470 crore in two of the seven subsidiaries of Indiabulls Financial Services (IFSL).

Both the companies will double their investments in Indiabulls Credit Services, where IFSL holds two-third stake and Farallon the rest.

The hedge fund had pegged the other company's worth at around Rs 265 crore a year ago when acquiring the 33 per cent stake.

This time, however, both stake-holders are investing in the same ratio in the credit services company.

The US fund will contribute Rs 89 crore in the company.

Sameer Gehlaut, chairman and CEO of Indiabulls Group, said with new investments, Indiabulls' subsidiaries are "well positioned in the personal and housing loan markets to leverage Indiabulls' strong pan-India distribution, technology and operations platform.

"While the housing finance subsidiary is engaged in the business of providing home loans and loans against property, Indiabulls Credit Services is focused on providing consumer loans to under-served middle markets and the segment that is unable to access credit from banks."