With this deal, Indiabulls will become the largest shareholder in the UK-based full-service lender.
Indiabulls chairman Sameer Gehlaut will also have an option to acquire an additional 10% stake in his personal capacity in OakNorth Bank at the same valuation.
OakNorth is said to be the largest non-bank lender, which serves structurally underserved small and medium enterprises sector (SME) in the UK.
Commenting on the deal, Gehlaut was quoted by The Hindu as saying: "With this investment, total investments of Indiabulls Group in the vibrant economy of London would be in excess of Rs.4,200 crore."
The deal has been approved by Reserve Bank of India (RBI), National Housing Bank; and the Prudential Regulation Authority of the Bank of England.
Indiabulls said: "OakNorth Bank has a successful deposit-taking franchise and this acquisition will give us an opportunity to build credentials and track record on this crucial aspect of establishing a comprehensive liability profile for its core business."
Founded in 2000, Indiabulls Housing Finance provides home loans and loans against properties in India through a network of 220 branches.
It offers loans against residential and commercial properties to small and mid-sized businesses, partnership firms, and private limited or closely held companies.
The company also provides finance and other related ancillary services; and insurance products.
Image: Indiabulls chairman Sameer Gehlaut. Photo: courtesy of Manmeetb1 / Wikipedia.
