According to reports from CNBC TV18 and Business Standard, Indiabulls Ltd has executed a definitive agreement to acquire a 70% stake in Fintech Cloud Private Ltd for ₹1,050 crore, based on an equity valuation of ₹1,500 crore. The acquisition will be carried out through a scheme under the National Company Law Tribunal (NCLT), with Indiabulls also taking control of the target's board. The consideration will be settled through the issuance of up to 21 crore fully paid-up equity shares of Indiabulls to shareholders holding the 70% stake in Fintech Cloud. As per an exchange filing on Friday, the deal values Fintech Cloud at ₹1,500 crore on an equity basis. Business Standard reports that the company has immediately appointed the majority of directors on the Board of the target company following the acquisition agreement.
As reported by CNBC TV18, Fintech Cloud was incorporated on January 11, 2021, and has a presence in India. The company's revenue was nil in FY24 and FY25 before rising to approximately ₹133.77 crore in FY26, when it reported a profit before tax (PBT) of ₹30.31 crore. Indiabulls shares ended at ₹25.89, up by ₹1.23, or 4.99% on the BSE following the announcement. The transaction requires approvals from NCLT and SEBI/stock exchanges, along with other applicable regulatory and shareholder approvals, with completion expected within 9-12 months.
According to the report, Fintech Cloud is a technology solutions company that acts as a Loan Service Provider (LSP) for various regulated entities and provides technology-enabled solutions and support for loan origination, underwriting and servicing to Non-Banking Financial Companies (NBFCs). Business Standard confirms that the target company is engaged in the business of providing technology-enabled solution and support for origination, underwriting and servicing to NBFCs. Indiabulls stated that the proposed acquisition will enable it to enter the fintech segment through a business providing technology solutions to NBFCs. The proposed acquisition does not constitute a related-party transaction, and Indiabulls confirmed that its promoter, promoter group and group companies have no interest in Fintech Cloud.
As reported by CNBC TV18 and Business Standard, the share issuance will be carried out pursuant to an NCLT-approved Scheme of Amalgamation and will be subject to applicable pricing regulations, including Securities and Exchange Board of India (SEBI) Issue of Capital and Disclosure Requirements (ICDR) regulations. The transaction requires approvals from the NCLT and SEBI/stock exchanges, along with other applicable regulatory and shareholder approvals. The proposed acquisition does not constitute a related-party transaction, and Indiabulls confirmed that its promoter, promoter group and group companies have no interest in Fintech Cloud.
