Indiabulls Housing Finance is the top loser of the day on the BSE. The stock which has closed on Tuesday at Rs.715.55, opened at Rs.713, going down as low as Rs.590.60. It is current down 12% at Rs.630 levels.  Volumes are huge – fro 49,000 shares over two week average to 11 lakh shares today alone.

The market is completely disenchanted with the company’s decision to acquire a 40% stake in UK based OakNorth Bank, forking out nearly Rs.650 crore. The market is flummoxed as to what made the management buy this company as it see’s no logical reasoning for paying so much money.  The management says this is a step in the right direction to eventually get a banking license. 

To make matters worse, Nomura issued a report stating that the price tag of Rs.650 crore or $100 million was too much for a start-up bank. OakBank got its banking license only in March 2015.