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Indiabulls Housing Finance shares slumped in intra-day trade on Friday after the company agreed to buy a stake in UK’s OakNorth Bank.
The shares fell over 17 per cent to Rs 590.60 in intra-day trade on the BSE. On the NSE, the shares nosedived 18.52 per cent to Rs 584.
On the BSE, Indiabulls Housing Fin shares ended 10.02 per cent or Rs 71.70 lower at Rs 643.85, against Thursday's close of Rs 715.55.
On the NSE, the shares ended down 10.17 per cent or Rs 72.90 at Rs 643.85.
Analysts have raised doubts on allocation of capital after the company said in a filing to exchange that it had agreed to buy 40 per cent stake in UK-based OakNorth Bank for $100 million. "The company has not shared the book size, quality of assets, the strategic reason nor the synergy for this partnership," said an analyst at a domestic brokerage.
Indiabulls Chairman Sameer Gehlaut may acquire additional 10 per cent in OakNorth at the same valuation after regulatory nod exchange filing.
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