Promoters of the Indiabulls Group ? with interests ranging from real estate and financial services to power ? are parting ways amicably to focus on the lines of businesses that they have been looking after till now.
On Wednesday, the group notified the bourses of an elaborate restructuring of the shareholding and management control of its various businesses being planned. The reorganisation is an attempt to ring-fence the group?s housing finance company against ?contagion risks of any other business (namely, power and infrastructure), besides bringing in specialised focus towards the real estate business and power business,? Indiabulls said in a statement.
Indiabulls? intimation to the stock exchanges said that the restructuring of the various business segments of the group was ?mutually agreed? upon and was being done ?so that each of the business segments receives their focused and undivided attention.?
Indiabulls, a relatively young business group, was founded in 1999 by Sameer Gehlaut, Rajiv Rattan, and Saurabh Mittal, three friends who studied together at the Indian Institute of Technology (IIT), Delhi. Over the years they expanded into financial services, real estate, power and infrastructure, with the help of marquee investors like Laxmi Narayan Mittal, the London-based chairman of steelmaker ArcelorMittal.
According to Indiabulls? filing, Gehlaut shall continue to control, manage and supervise most of Indiabulls? major businesses like housing finance, real estate, securities, and wholesale trading. Rattan and Mittal will relinquish all control, management and supervision rights over these firms in Gehlaut?s favour. The latter two have resigned as directors of Indiabulls Housing Finance and Indiabulls Real Estate, the group?s statement said.
Reciprocally, Gehlaut has stepped down as chairman and director of two companies, Indiabulls Power and Indiabulls Infrastructure and Power. Rattan will take over the as the chairman of these firms and their control, management and supervision would be shared between Mittal and Rattan.
Rattan and Mittal are also relinquishing any right or interest in the ?Indiabulls? brand name, and the names of Indiabulls Power and Indiabulls Infrastructure and Power will be changed before December 31, the filing states.
The proposed scheme of restructuring is subject to legal and regulatory approvals.
Indiabulls group companies announced a slew of block deals to the bourses on Wednesday, which were inter se transfers between different promoter group firms controlled by Gehlaut, Mittal and Rattan.
?The promoters are parting ways amicably,? Gagan Banga, who has been elevated as vice chairman and managing director of Indiabulls Housing Finance, said over the phone. ?Sameer will be selling his ownership in the power business and acquiring back maximum shareholding from Rajiv and Saurabh in the housing finance and real estate businesses.?
