Indiabulls promoters split group to ringfence housing business

Representational image. Agencies[/caption]A report in Business Standard says that Sameer Gehlaut, chairman of the Rs 20, 600-crore corporation, will now take charge of the flagship companies like Indiabulls Housing Finace, Indiabulls Real Estate, Indiabulls Securities and Indiabulls Wholesale Services.The other promoters Rajiv Rattan and Saurabh Mittal will control and manage Indiabulls Power Limited (IPL) and Indiabulls Infrastructure and Power Limited (IIPL). Moreover, they will not be able to use the Indiabulls brand name after 31 December.Gehlaut will sell Rs 800 crore worth of shares in Indiabulls Power to Rattan and Mittal, who will in turn sell shares worth the same amount in Indiabulls Housing and Indiabulls Real Estate to Gehlaut.Indiabulls Housing Finance, Indiabulls Real Estate and Indiabulls Power make up Rs 11, 902 crores, Rs 3, 541 crores and Rs 3, 470 crores of Indiabull's total market capitalisation, said the report.“This amicable reorganisation exercise will enable all three young entrepreneurs to focus on their areas of expertise, consolidate their shareholding of the companies they want to run on a long-term basis and continue to maximise shareholder value,” said a note from Indiabulls in the Business Standard report. "The board of Indiabulls Housing Finance wants to delink ownership from management and has decided to elevate the current CEO, Gagan Banga, as the vice-chairman and managing director of the company,” the note added.A group insider also told Business Standard that it was very important to ringfence IBHFL from the company's power business because IBHFL accounted for 80 percent of the group's profits and was a retail brand.Indiabulls annual growth rate has been 54 percent for the last five years. It has given up unsecured lendings, insurance license and retail venture, said the report.