Indiabulls Housing Finance, announced to buy 39.76% stake in OakNorth Bank, a full service universal UK Bank for USD 100 million.

The company said, "lnvestment in oakNorth Bank will benefit the company with a global platform for building its track record of a deposit franchise in a highly regulated market."

"The acquisition is a strategic investment and going forward the company maintains its guidance of 20% - 25% annual growth -across all financial parameters, as it has registered over the last 6 years. This investment will have no impact on the company's dividend policy guidance of paying 50% of profits as dividends," it added.

The bank has a successful deposit-taking franchise and this acquisition will give the company an opportunity to build credentials and track record on this crucial aspect of establishing a comprehensive liability profile for its core business.

The transaction is pursuant to all applicable regulatory approvals from relevant regulators in lndia and the UK. Post completion of the transaction, the company will be the largest shareholder in the bank.

Further, subject to regulatory approvals, Sameer Gehlaut, chairman of the company, will be investing in his personal capacity up to 10% stake in OakNorth Bank at the same valuation.

Shares of the company declined Rs 86.60, or 12.10%, to trade at Rs 628.95. The total volume of shares traded was 1,038,268 at the BSE (12.52 p.m., Friday).