Acre ARC set to purchase Indiabulls assets

Los Angeles-based $149 billion Ares Management Corp-backed asset reconstruction firm, Assets Care & Reconstruction Enterprise (Acre), has agreed to buyout a majority of the assets owned by Sameer Gehlaut-promoted ARC in a deal seemingly to be signed as quickly as Friday, two folks related to the transaction stated.

The deal is one more try by the Sameer Gehlaut-led Indiabulls Group to shed capital-intensive assets because it strikes to a brand new enterprise mannequin based mostly on charges and trailing revenue.

“The total assets Indiabulls ARC has are about Rs 2,100 crore, out of which about Rs 1,800 crore are being sold to Acre,” said one of the persons cited above. “These are mostly small retail loans like mortgages and loans against property with a small part of corporate and SME loans. The transaction is very close to completion.”

Indiabulls plans to wind down the remainder of the ebook consistent with the corporate’s goal to give attention to new companies like telemedicine, healthcare and

. The ARC enterprise is a 100% subsidiary of the erstwhile Indiabulls Ventures, which has been renamed as Dhani Services. It was began in 2017.

Indiabulls promoter Sameer Gehlaut took over because the CEO of Dhani after he stepped down as chairman of flagship Indiabulls Housing Finance Co in August 2020. He is at present a non govt director of Indiabulls Housing, although he stays promoter of each firms.

“This is the stated objective of the company to move away from the ARC business. The focus of Indiabulls Ventures has also shifted after the launch of this app, which delivers medical and financial services through the use of technology,” stated the second individual cited above.

Indiabulls and Acre didn’t reply to separate emails looking for remark.

The deal will assist Acre to enhance its assets beneath administration to above Rs 10,000 crore and is the second acquisition by the corporate after finishing a Rs 2,800 crore portfolio buyout of actual property NBFC, Altico Capital, in March.

Besides, Ares SSG, which holds 49% stake in Acre, Axis Bank (13.67%) and

(8.31%) are additionally shareholders within the ARC. Other shareholders embody Bank of Baroda and Life Insurance Corp of India.

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