Indiabulls Housing Finance Ltd. has purchased the entire 42.5% holding of Amaprop Ltd. in its subsidiary, Indiabulls Finance Company Pvt. Ltd., for a total sale consideration of Rs.260 crores (approximately, US$43,000,000). With the purchase of Amaprop’s equity stake, Indiabulls Finance Co. Pvt. Ltd. is now 100% owned by Indiabulls Housing Finance Ltd.

In 2005, Amaprop acquired a 42.5% stake in Indiabulls Finance Company Pvt. Ltd. for Rs.130.97 crores and was issued 32,33,396 equity shares of Rs.10 each. However, a dispute arose between Indiabulls and Amaprop on the latter exercising its put right under the shareholders’ agreement, as the put price arrived at in accordance with the agreement was rejected by the RBI being in excess of the Fair Market Value as per the then prevailing RBI pricing guidelines.

The dispute was concluded through an arbitration process in New York, where the arbitral tribunal passed an award requiring Indiabulls to pay Rs.192 crores along with interest and costs thereon to Amaprop for acquiring the 42.5% stake.

Majmudar & Partners represented and advised Amaprop in opposing the challenge filed by Indiabulls Financial Services Ltd. under Section 34 of the Arbitration and Conciliation Act, 1996, in the Delhi High Court against the international arbitration award rendered in favour of Amaprop. Eventually, the Section 34 petition was dismissed with costs. Thereafter, the firm advised Amaprop on execution proceedings in the Delhi High Court to execute the foreign award, which culminated in the settlement agreement.

The litigation matters were handled by partner, Mr. Neerav Merchant, and the share sale transaction was led by partner, Mr. Akil Hirani. Amaprop was also represented by US law firm Orrick, Herrington & Sutcliffe LLP. Fox Mandal, Delhi, represented Indiabulls.