Indiabulls 2.0: CEO Gagan Banga Tells Staff To Get Ready For Big Transformation
Is Indiabulls 2.0 taking shape? Ganga Banga, the MD and CEO of Indiabulls Housing Finance (IHF), India's third-largest housing finance player, announced to the senior staffers on Saturday that the company will change its name and embark upon a massive rebranding exercise. Banga's letter, accessed by BW, says IHF was trying to evolve a very unique business model, which is extremely scalable.
"...but shall require attrition and adjustments. As we work with our counterparties, don't mind the frequent credit policy changes over the next few months," Banga told his staffers.
In February this year, Sameer Gehlaut, the founder promoter of IHF, stepped down as the company's promoter and cut his stake in the company from 21 per cent in December 2021 to just two per cent currently. IHF, say insiders, is moving towards an institutionalized structure as the promoter is poised to completely exit from the company.
"As we transform ourselves, it's not about how we tag ourselves - promoter-led organization or diversified ownership - but it is how we think about each other. Is this company about us trying to create something of value together OR me trying to get more till I am there, and then someone else will give me more … but shall they respect and care?" Banga's letter to the staffers said.
Reportedly, PE major Blackstone ADIA is among the foreign players in the fray to hike their stake in IHF. Currently, these two, along with Vanguard, PIMCO, BlackRock, and TreeTop Asset Management, hold around 18.52 percent stake in IHF. Also, Gehlaut's exit is said to be a precondition to these funds further hiking their stake substantially in the company.
"...most of you must be getting an update on the direction we are trying to take the company towards. I want to reassure each of my colleagues that we are on the right track," Banga's letter says.
To put forward his point of view, Banga further drew a parallel with the merger of HDFC, India's largest housing finance company, and HDFC Bank.
"If we reflect on their past, they had a difficult IPO and a tough time through 2008. (But) 15 years later, look at what they have achieved… Can we learn from them and progress?" Banga wrote, giving a pep talk to his colleagues.
