Indiabulls Makes a Major Fintech Bet: To Acquire 70% Stake in Fintech Cloud in ₹1,050 Crore Deal
Venturing into the fintech sector, Indiabulls Limited has decided to acquire a 70% stake in Fintech Cloud Private Ltd. The company announced after market hours on Friday that an agreement worth ₹1,050 crore has been signed for this acquisition. Based on this deal, Fintech Cloud has been valued at approximately ₹1,500 crore.
Under the proposed deal, Indiabulls will acquire 70% of Fintech Cloud’s equity share capital. Additionally, Indiabulls will gain control over the company’s board and appoint a majority of the directors with immediate effect.
Terms of the Deal
The acquisition will be executed through a scheme subject to the approval of the National Company Law Tribunal (NCLT). The ₹1,050 crore consideration will be settled via shares rather than cash. To this end, Indiabulls will issue up to 21 crore fully paid-up equity shares to the existing shareholders holding the 70% stake in Fintech Cloud.
The share issuance process will be governed by the scheme approved by the NCLT and will comply with applicable regulations, including SEBI’s Issue of Capital and Disclosure Requirements (ICDR) norms.
Fintech Cloud Provides Technology Services to NBFCs
Fintech Cloud is a technology solutions company that operates as a Loan Service Provider (LSP) for various regulated entities. The company provides technology-based services and support to NBFCs during the lending process.
These services include technology solutions for loan application and processing, underwriting (assessing customer and credit risk), and post-disbursement loan services.
