Indiabulls Housing Finance has reached an agreement to sell its mutual fund business to the company behind investment platform Groww.
An announcement on the BSE confirmed that Indiabull has “decided to focus on its real estate asset management business through AIF structures in line with its asset-light strategy”.
“Therefore, the mutual fund business does not remain a core focus area for the company,” it added.
As a result, it has agreed a deal with Nextbillion Technology, part of Groww Group, to divest its entire shareholding for a total of INR 1.75bn (£16.9m, $23.8m, €19.6m); including INR 100bn in cash and cash equivalents.
According to the stock exchange announcement, Bangalore-based Groww was launched in May 2016 and it is “currently one of the leading tech platforms for investing inter alia in stocks and mutual funds”.
The transaction is expected to close on or before 30 June 2022, subject to regulatory approvals.