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Indiabulls promoters rejig biz control

Thursday, 10 July 2014 - 6:50am IST | Place: Mumbai | Agency: dna

Promoters of Indiabulls group, Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal, are reorganising the management control of different group companies, among themselves. Accordingly, control of flagship companies in the housing finance, real estate, securities and wholesale businesses are being retained by Gehlaut, with Rattan and Mittal relinquishing all management and oversight in these entities.

The move, Indiabulls group said in a statement, will impart greater focus and accountability at the top leadership level while also rationalising operations of diverse and disparate business verticals.

While the exercise will institutionalise Indiabulls Housing Finance Ltd (IBHFL), it will also allow the company to be completely ring-fenced from the power business that will now be controlled Rajiv Rattan and Saurabh Mittal.

As per the arrangement, Gehlaut will relinquish all control, management and supervisions rights of the power business and the other two promoters will step down from the board of directors of IBHFL.

The reorganisation will also see induction of K C Chakrabarty, former deputy governor of the Reserve Bank of India and R M Malla, former chairman of IDBI Bank on the board of the housing finance company.

Additionally, de-linking ownership from management, the IBHFL board has elevated the current CEO, Gagan Banga as the vice chairman and managing director of the company.

Calling it an efficient way of allowing the promoters in doing what they do the best, Banga told dna that the Indian economy has seen a lot of headwinds in last three years and the next three will see significant tailwinds.

"For the housing finance business, we are targeting a balance-sheet size of Rs 1 lakh crore in the next three years and this reorganisation will help in a big way to achieve it. The real estate vertical is another important business that will grow between 20% and 25%. Though small, the securities and wholesale business will also grow by 20%," said Banga.

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