India bulls housing finance news

India bulls housing finance news

Latest Finance News

You must have heard of Subramanian Swamy. On 28 June 2019 a letter was circulated in social media. It was written in that letter that Subramanian Swamy has written a letter to PMO, in which he made charges on Indiabulls housing finance. In the same evening, Indiabulls finance gives clarification that they haven’t siphoned any funds to their private companies. Apart from that they do not have anything to do with national housing bank.

Indiabulls housing finance news

I Todd, will tell you today why India bulls housing finance Ltd. went down by 35% in one day. This year a deal was done between Lakshmi Vilas Bank and India bulls housing finance Ltd. swapped shares. To explain a Share-Swap Deal, assume that company. A wants to acquire company B Then the shareholders of company A starts swapping shares with shareholders of company B. And a merger happens between two companies. So India bulls housing finance market and assets had thought that they would get banking license this way and their need for money will also be solved.

Investors were quite optimistic about this deal. Friends, whenever there is a deal and there is optimism among investors and it doesn’t go as expected. Shareholders react negatively and share price goes down. Perhaps this is what happened to Indiabulls housing finance Because RBI has initiated prompt corrective actions against Lakshmi Vilas Bank Simply put, Lakshmi Vilas Bank is not in a good state. Because its NPS is too high Asset space got negative returns in the last two years. Because of which RBI has prohibited them from lending This news about Lakshmi Vilas Bank was received negatively by investors of Indiabulls Housing finance ltd. And that is why its share price went down by almost 35% in one day. Let me talk about the second point now.

The second point is related to Subramanian Swamy’s letter, in which he made allegations of irregularities on Indiabulls housing finance. In addition to this, a PIL, Public Interest Litigation was registered in Delhi High Court. On Friday, Delhi High court accepted that litigation and also issued a notice saying that the investigation will be carried out by SIT, Special Investigation Team. It is major news when a court accepts a litigation and issues a notice that it be looked into whether something is wrong. Both these news negatively impacted investors. They panicked and the share went down by 35% in one day. This share used to trade above 1000 rupees once. It came down to around 240 now. It also broke the 52-week law Friends, it is interesting to look at how Indiabulls Ltd.

How it will merge with Lakshmi Vilas Bank and the investigation ordered by Delhi High Court. On the irregularities how Indiabulls would respond to that. How they will pacify their investors that there is nothing to worry about. That in the upcoming days it can bounce back. We will have to wait and see. This content was purely for educational purposes to learn financial concepts and strategies. We simply tried to explain the news to you in simple words.

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Irma Terry

Irma Terry loves To talk about Finance, Scientific works in the theories of finances and credit, according to the specification of the research object, are characterized to be many-sided and many-leveled.