Indiabulls Housing Finance jumps 4% on $165 mn FCCBs issue plan

Indiabulls Housing Finance shares jumped 4 per cent to Rs 216.80 on the BSE in the intra-day trade on Wednesday buoyed by the company’s fund raising plan. After successfully raising Rs 807.83 crore, it now plans to raise another $165 million.

At 10:30 am, the stock quoted 3 per cent higher at Rs 214.80 on the BSE. The counter saw a combined volume of around 7.84 million shares on the BSE and NSE changing hands till the time of writing of this report. The stock has been a notable underperformer since June 7 and has declined as much as 25 per cent on the BSE. In comparison, the S&P BSE Sensex was up 12.1 per cent during the period.

In a regulatory filing to the exchanges on Tuesday, Indiabulls Housing Finance announced to raise $165 million by issuing Foreign Currency Convertible Bonds (FCCBs). The decision was taken at a meeting of the Securities Issuance Committee of the company held on September 21, 2021, the release stated. READ HERE

Further, the FCCBs carry a token rate of 4.5 per cent and shall be due for convertible into equity shares in 2026. The initial conversion price of the fully paid-up equity shares is Rs 243.05.

In a separate development, the company successfully raise Rs 807.83 crore by way of issuance of Non-Convertible Debentures (NCDs). The issue was open for subscription from September 6, 2021 to September 20, 2021, was oversubscribed 4.04 times, with retail category oversubscription at 2.44 times.

For the quarter ended June 2021, the company reported 2 per cent quarter-on-quarter growth in net profit at Rs 281.69 crore, despite a 4 per cent drop in total income at Rs 2,325.75 crore.

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