L N Mittal acquires 8.2 pc stake in Indiabulls Credit Services

Mumbai, Mar 30 (UNI) Steel tycoon L N Mittal-owned company Internet Ventures Ltd (LNMIIVL) has acquired 8.2 per cent stake in Indiabulls Credit Services Ltd for approximately Rs 90 crore, an Indiabulls release here said.

The investment, at approximately Rs 62 per share, values Indiabulls Credit Services at Rs 1,100 crore, the Company said.

Mr Mittal's company will pay approximately Rs 62 per share for both investing Rs 45 crore in the company and making secondary purchase of shares amounting to Rs 45 crore, the release added.

Indiabulls Credit Services will issue 7,210,865 shares to LNMIIVL for an investment of approximately Rs 45 crore, it said, adding that LNMIIVL will hold a total of 14,421,730 shares in Indiabulls Credit Services.

Following the new investments, the shareholding of Indiabulls in Indiabulls Credit Services will decrease from 55.3 per cent to 53 per cent due to the issuance of new shares, and Indiabulls Credit Services will have an enhanced equity capital base of approximately Rs 460 crore.

L N Mittal, through LNMIIV, has been an investor in Indiabulls Financial Services, a listed company, since the year 2000 when he had originally bought 61.3 lakh shares or 7.52 per cent stake in the Company, the release said.

The total foreign shareholding in the Company has gone up to 56.6 per cent as per the latest stock exchange filing. Some of the shareholders who own more than five per cent equity in the Company include Fidelity, Capital International and Merril Lynch.

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