Gehlaut to sell 11.9% stake in Indiabulls Housing Finance. A neat Rs 1300 cr + take home.

As per newspaper reports, the promoter Sameer Gehlaut has mandated Jefferies to sell the stake through the block deals.

Key points to note –

  • As at September end, promoter group owned 21.69% of Indiabulls Housing Finance Limited (IBHFL). Post this stake sale promoters will be left with less than 10% stake. Of the balance, currently 27.15% is owned by FIIs, 12.37% by DIIs, 3.68% by treasury and balance 35.1% by retail.
  • Blackstone, Abu Dhabi and other global investors are speculated to be the buyers.

Some interesting points to note –

  • Stock has been one of the biggest wealth destroyers over the years. After reaching a high of about Rs 1,400 in January 2018, the company just couldn’t come out of the NBFC crises (DHFL, IL&FS) led decline and reached to a low of about Rs 90 in March 2020.
  • Since then, the stock did recover and became more than 3x, reaching around Rs 290 in June 2021.
  • This was also the quarter by when Mr Rakesh Jhunjhunwala had acquired 2.17% into the Company.
  • As expected, this news led to significant accumulation by the retail investors buying almost 8% in the next 3 months. This was handed over to them by FIIs (6.5%), DIIs (0.5%) and Mr Jhunjhunwala himself (1.1%).
  • Even if one zooms out little more, one can see that whereas FIIs stake declined in the company from 55.7% in December 2018 to 27.15% in September 2021, during the same period retail’s ownership increased from 9% to 35%.

There is so much to learn from this !

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