Indiabulls set to hive off consumer finanace business

IBFSL(indiabulls financial services limited) plans to demerge the consumer finance business to

form a separate company.the company's housing finance business would subsequently become a

susidiary of the demerged consumer enterprise.

concrete plans for the demerger will be announced before the end of current financial year itself...

this way indiabulls would have one company each for 3 different verticals ,namely

1. brokerage

2. real estate

3. consumer finance

indiabulls sees a huge growth opportunity in consumer finance and is targetting agressive
growth projections...Urban micro-finance is a key focus area for the company's consumer
finance business....Indiabulls is currently testing a model of loaning small amount of money in
the range of Rs 10,000-15,000 to small traders with a system of daily collection of small
amount of interest. a pilot project of this model is on in Mumbai and once approved ,Indiabulls
could implement it in 15 major cities by March-April this year......this is the first of its kind
model of financing in country


Loans against gold, loan for the small and medium enterprises(SME) segment and mortgage
loans are other areas of consumer financing that the company is present in....


the scrip of IBFSL is trading around 340 range ....it has moved up nicely in last two trading
sessions.....the scrip is clear buy n hold for short to medium term ......long term investors can

also buy it given the fact that both brokerage n consumer finance have good growth prospects
moving forward..