Mumbai: (IHF) is looking for a new strategic investor to anchor the company after founder and promoter Sameer Gehlaut cut its stake below 10% last week even as the company plans to restructure its business by launching two credit funds, which will undertake a risky developer loans and reduce the risk of the business of wholesale loan volatilities.

Managing Director Gagan Banga said the company would secure an enabling resolution to give a seat on the board of directors to any significant financial shareholders of the company, which could translate into strategic participation in the coming months. Another attempt to obtain a banking license is also an option, as the company will now be controlled by a diverse set of unrelated investors, he said.

Last week, Gehlaut reduced its stake from 21.69% to 9.8% thanks to a block agreement, which was subscribed among others by the American private capital giant Blackstone, the sovereign fund Abu Dhabi Investment Authority ( ADIA), HSBC and local mutual funds Invesco and Quant Capital. .



Blackstone owns 3% of IHF while ADIA owns 2% after buying shares. Banga said reducing Gehlaut’s stake below 10% would allow him to begin the process of formally resigning from his job as promoter and improve the company’s outlook.

“By just doing this little thing of not being part of any group and not having an identifiable promoter has opened up endless possibilities for us… we can now work to get a strong strategic promoter.” We are talking to a few large institutional investors for strategic participation, ”said Banga.

He acknowledged that Blackstone could be part of the talks, but said discussions were underway with a group of investors. Blackstone is also currently in the final stages of acquiring Indiabulls Real Estate in partnership with Bengaluru-based Embassy Group, whose shareholder approval is expected next month.

As part of IHF’s plan to reduce the risks of its operations, the company will ask the Securities and Exchange Board of India (Sebi) to launch two credit funds under the Alternative Investment Funds (AIF ) with two global investors, one for residential projects and the other for commercial purposes.

“The two loan funds will help us take advantage of the wholesale loan opportunity without exposing NBFC capital. These will be 100% subsidiaries of the IHF and the profits from these funds will always go to the NBFC. % while our partner fund will invest 90% in the funds, ”Banga said.

Harnessing the developer funding opportunity will put the company back on track for growth and stop falling assets, he said.

The collapse of IL & FS and the resulting cash crunch for NBFCs also impacted the IHF. From a loan portfolio of 1.23 lakh crore at the end of fiscal 2018, the company’s loan portfolio declined to 65,438 crore at the end of the quarter ended June 2021, of which 16,000 crore are developer loans. Even though the capital adequacy ratio of 30.65%, more than double the regulatory mandate, increased competition from banks and rising cost of funds have posed new challenges over the past three years.

Banga said the company was forgoing a profit opportunity of 300 crore to 400 crore per year due to its aversion to developer loans. “We make around 1,500 crore by lending to developers and we can go back to make 700 crore to 1,000 within two to three years with these lending platforms. This will help us achieve a 15% Return on Equity (RoE) by FY 2024 and resume contributing 40-45% to our profits from this business without exposing our capital. ”