The three co-promoters of diversified Indiabulls Group are carving the businesses into two halves with Sameer Gehlaut retaining bulk of the business including housing finance, securities, real estate & wholesale trading while Rajiv Rattan and Saurabh Mittal get sole control of power and infrastructure business.
Rattan and Mittal will also give up on the Indiabulls brand in the firms controlled by them, as part of a group restructuring.
The group did not say if these changes would also coincide with complementary change through equity swap in shareholding of the promoters or just a change in their classification.
However, a string of bulk deals between promoter-owned entities on Wednesday indicate the restructuring goes beyond management control and marks a formal split in the group. There is no clarity on how the cross holdings of the listed firms would be treated post this division.
Indiabulls, which has around half a dozen listed firms, said the promoters have mutually agreed to restructure the various business segments of the group and their responsibilities among themselves so that each of these business segments receive their focused attention.
The restructuring is effective from July 9, 2014.
As per the new arrangement, Sameer Gehlaut has retained housing finance, real estate, securities and wholesale services headed by its flagship companies Indiabulls Housing Finance Ltd (IHFL), Indiabulls Real Estate Ltd (IREL), Indiabulls Securities Ltd (ISL) and Indiabulls Wholesale Services Ltd (IWSL). Rajiv Rattan and Saurabh Mittal have retained Indiabulls Power Ltd (IPL) and Indiabulls Infrastructure and Power Ltd (IIPL).
Accordingly, Sameer Gehlaut has relinquished his role as chairman and director of IPL and IIPL. These two units will be under the control of Rajiv Ratan and Saurabh Mittal who will be co-owners. At the same time Rattan and Mittal will relinquish all their roles in IHFL, IREL, ISL and IWSL.
Rattan and Mittal will have no interests in Indiabulls brand and they will change the existing names of IPL and IIPL by the end of this calendar year.
(Edited by Joby Puthuparampil Johnson)