The LN Mittal India Internet Ventures Ltd has acquired 8.2 per cent stake in Indiabulls Credit Services Ltd, a majority-owned subsidiary of Indiabulls Financial Services Ltd, for about Rs 90 crore ($20 million). LNM will pay about Rs 62 per share for investing Rs 45 crore in Indiabulls Financial as well as making secondary purchase of shares for an equal amount. ICSL will issue 7.21 million shares to LNM-IIVL for about Rs 45 crore. The investment values ICSL at about Rs 1,100 crore.

LNM-IIVL will hold a total of 14.4 million shares in ICSL. After the new investments, the shareholding of IFSL in Indiabulls Credit will decrease from 55.3% to 53% due to the issuance of new shares. Indiabulls Credit will have an enhanced equity capital base of about Rs 460 crore with the new investment.

This investment follows Farallon Capital’s two prior rounds of investments in Indiabulls Credit Services. Recently Farallon had paid Rs 55 per share and invested $20 million in the company and last year Farallon had paid Rs 22 per share to buy 33% stake for Rs 88 crores in Indiabulls Credit Services. [Via DNA]

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Farallon Keeps Pumping Money Into IndiaBulls; Puts In $45 Million In Consumer Credit And Housing Companies

Posted on 03/31/06, 1:03 AM
in: Deals, Main Page, Venture Capital
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