Indiabulls Ventures Ltd, a financial services company has secured an amount of Rs 1,539.20 crore ($210 million) in a funding round. The particular round was led by four foreign institutional investors, including a private equity firm.
The basic purpose of the funding round is to infuse long-term capital into two of its subsidiaries. Indiabulls Ventures will make a preferential allotment of compulsorily convertible debentures to Tamarind Capital Pte, Hong Kong-based hedge fund Steadview Capital, US-based venture capital fund ABG Capital and DF International Partners.
The company is planning to use these funds to capitalize on lending arm Indiabulls Consumer Finance Ltd and Indiabulls Asset Reconstruction Co Ltd. The debentures have been allotted at a 35% premium to the company’s share price on Tuesday.
Shares of Indiabulls Ventures have collapsed 50% over the past two months as market sentiment weakened amid fears that non-banking finance companies and housing finance companies were facing a cash crunch.
Some companies of Indiabulls Group, too, are selling assets. Indiabulls Housing Finance is looking to sell all or a part of its 18.7% stake in London-based lender OakNorth Holdings to a private equity fund, The Economic Times reported earlier this week. Indiabulls Housing’s stake is valued at up to Rs 4,500 crore.