Indiabulls Housing Finance To Raise Over Rs 7,000 Crore, Stock Edges Lower

Share price of Indiabulls Housing Finance edged lower by more than one per cent on Wednesday, June 30, a day after the mortgage lender announced that its board of directors approved a proposal to raise over Rs 7,000 crore through various financial means. On Wednesday, Indiabulls Housing Finance opened on the BSE at Rs 267, inching to an intra day high of the same level and an intra day low of Rs 260, throughout the trading session. The raising of Rs 7,000 crore through various means includes Rs 2,043.43 crore by issuing equity shares or other instruments.

The country's second-largest housing finance company's fund mop-up plan is subject to the approval of its shareholders in the upcoming annual general meeting, which will be held next month. On the NSE, Indiabulls Housing Finance opened at Rs 266.50, registering an intra day high of Rs 266.60 and an intra day low of Rs 259.85. Its shares settled 1.40 per cent lower at Rs 260.30 on the NSE.

The plan to raise funds will also include the issuance of listed or unlisted, unsecured or secured, redeemable non-convertible debentures with or without the warrants or any other similar security denominated in rupees. This will be in one or more tranches for Rs 5,000 crore, on a private placement basis or otherwise.

The Gurugram-headquartered banking company plans to focus the management bandwidth and its consolidated capital towards the real estate asset management business, keeping in line with its asset-light strategy.

Shares of Indiabulls Housing Finance settled 1.17 per cent lower at Rs 260.90 on the BSE.