Tag: Indiabulls Housing Finance

Indiabulls Housing Finance to raise up to ₹10,000 crore via bonds, borrowings

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Non-banking lender Indiabulls Housing Finance Ltd. has approved raising an aggregate sum of ₹10,000 crore or its equivalent in US Dollars or any other currency through one or more eligible investors, it said in an exchange filing.

The board approved the fund raise, create, offer, borrow, issue and allot debentures and / or bonds and / or debt and / or external commercial borrowings (ECB) or any other non-convertible securities through a public offer or a private placement or any other combination thereof.

Indiabulls Housing Finance’s Securities Issuance and Investment Committee of the board has been authorised by the board to examine, evaluate various options to raise funds in a manner most beneficial to the company.

In an interaction with CNBC-TV18 on March 6, Gagan Banga of Indiabulls Housing Finance said that the company’s legacy book, which they will eventually run down is worth ₹25,000 crore.

Banga also said that he is expecting a Return on Assets (RoA) for Indiabulls Housing to be at 3% for financial year 2026 and that he will cap the leverage at 2 times.

Shares of Indiabulls Housing Finance are trading 1.8% lower at ₹166.20.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indiabulls Housing Finance targets 15% growth in FY25 asset base

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Gurugram-based Indiabulls Housing Finance is targeting a growth of around 15% in its asset under management (AUM) in the financial year 2025.

“There is renewed focus on ensuring that the disbursals around retail business, which is home loans and retail loans against property given to small business owners, scale up; we are hopeful that we will be able to start growing our AUM,” said Gagan Banga, the company’s Vice Chairman and Managing Director.

The company’s AUM is currently at around ₹67,000 crore.

Banga is confident of achieving return on assets (RoA) of more than 3% by the end of the financial year 2026 and return on equity (RoE) of over 15% by financial year 2027.

Speaking to CNBC-TV18, Banga said, “The RoA had declined from being north of 3% to a low of about 1.2%. It has inched back up to 1.6%. We expect that every six months, we should be able to grow the return on equity (RoE) by about 20 basis points, which should take RoA to north of 3% by fiscal year 2026.”

In the third quarter of FY24, disbursements declined 21% year-on-year (YoY). Net Interest Income (NII) also slipped 28% YoY to ₹350 crore.

Moody’s recently upgraded the ratings for Indiabulls Housing Finance.

Moody’s attributed this upgrade partly to the rights issue in February 2024, which is anticipated to bolster the Total Capital to Total Managed Assets (TCE/TMA) ratio and the Capital to Risk (Weighted) Assets Ratio (CRAR).

“The rating upgrade is going to more be impactful on any future international issuances we do. We have, in the past, raised almost around 25,000 crores internationally in dollar denominated loans bonds etc. We will continue to evaluate that market and based on opportunity see if we can raise some liquidity there as well,” Banga said.

Indiabulls has a market capitalisation of ₹13,218.67crore. The stock has gained 81% over the last year.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indiabulls Housing Finance rights issue opens today; Here’s All You Need To Know

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The rights issue of Indiabulls Housing Finance will open today through which it plans to raise ₹3,693 crore.

Indiabulls Housing Finance plans to issue 24.62 crore rights shares of face value of ₹2 each at a price of ₹150 per rights equity share. The record date for the rights issue was February 1. This means that those who purchased shares of Indiabulls Housing Finance after February 1 will not be eligible to participate in the rights issue.

A rights issue is where a company raises funds by selling additional shares to existing shareholders of the company. In case an individual does not own shares of the company as of the record date, he/she is not eligible to participate in the rights issue.

These rights shares are sold at a discount to the current market price.

Based on Tuesday’s closing price, the rights issue price is at a discount of 19.3%.

Existing shareholders of Indiabulls Housing Finance, who had shares of the company as on the record date, will be entitled to receive one rights equity share for every two paid-up equity shares they currently own.

The on-market renunciation period, where existing shareholders can give up their rights on the floor of the market at a better price, will take place between February 7 and February 8.

The rights issue will close on February 14.

The board of Indiabulls Housing Finance had last month approved raising up to ₹5,000 crore or a sum equivalent in US Dollars via various methods.

Shares of Indiabulls Housing Finance ended 2.2% higher on Tuesday at ₹186.8.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indiabulls Housing Finance Rights Issue: Check dates, price, entitlement here

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indiabulls Housing Finance Ltd. has approved a rights issue of shares through which it plans to raise ₹3,693 crore, it said in an exchange filing on Sunday.

The company will issue 24.62 crore rights shares of face value of ₹2 each at a price of ₹150 per rights equity share. The rights issue price is a 24.6% discount to the stock’s closing price last Thursday.

Shareholders will have to pay ₹50 per rights equity share at the time of application and the outstanding subscription money will be called within 12 months from the date of allotment of the shares.

February 1, 2024, has been fixed as the record date to determine the eligibility of shareholders who will receive the rights shares.

A rights issue is where a company raises funds by selling additional shares to existing shareholders of the company. In case an individual does not own shares of the company as of the record date, he/she is not eligible to participate in the rights issue. These rights shares are sold at a discount to the current market price.

Indiabulls Housing Finance’s rights issue will open on February 7 and close on February 13, 2024. The on-market renunciation period, where existing shareholders can give up their rights on the floor of the market at a better price, will take place between February 7 and February 8.

Existing shareholders of Indiabulls Housing Finance will be entitled to receive one rights equity share for every two paid-up equity shares they currently own.

The board of Indiabulls Housing Finance had last week approved raising up to ₹5,000 crore or a sum equivalent in US Dollars via various methods.

Grasim, the Aditya Birla Group company, recently announced a ₹4,000 crore rights issue, which closes today, January 29. You can read more about that here.

Shares of Indiabulls Housing Finance ended 5% higher on Thursday, but are down 8% this month. However, the stock is up 70% during the last 12 months.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indiabulls Housing gains for fourth day, FIIs bet on Manappuram: Dealing Room check

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Indiabulls Housing Finance ended with gains of over 3.5% on Thursday, extending it for the fourth day in a row. The stock has ended at the highest level in nearly two months.

Sources within the dealing rooms told CNBC-TV18 that the stock gained on strong buy flows at the HNI desk. The HNIs were buyers in the cash market as the stock is currently in the F&O ban.

The stock gained for the fourth day in a row and has now gained 21% so far in 2023.

Resistance At Higher Levels

After trading at the highest point of the day for most part of the session, the markets saw a sharp correction from higher levels but managed to end in the green.

The Nifty 50 ended over 100 points of the day’s high and dealers said that this was due to some market at close basket selling at a leading FII desk. Flows were also mixed on Thursday but with a negative bias.

Broader markets continued to outperform with the BSE Smallcap index ending at a record high.

IT stocks also outperformed on Thursday with the Nifty IT index ending 3% higher. This was the best single-day gain for the index since July this year.

Besides Indiabulls Housing, these stocks made it to the dealing room chatter:

Allcargo Terminal: The stock ended 13% higher on Thursday on strong volumes. Dealers said that selling pressure in the stock from a leading FII is largely over. The stock had gained 20% on November 6 as well.

Manappuram Finance: The stock gained for the fourth day in a row and also ended at a 52-week high. The stock has gained 17% in the last four trading sessions. Dealers suggest that FIIs have been strong buyers in the stock recently.

Glenmark Pharma: Shares of the drugmaker have gained in the last two sessions and dealers believe that a leading family office is an active buyer in the stock off late.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indiabulls Housing Finance share price: Top gainer on Nifty 500 recovers all of Tuesday’s losses

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of Indiabulls Housing Finance are trading with gains of over 10 percent on Wednesday, September 13, bucking the broader market trend which continues to see pressure.

The stock is the top performer on the Nifty 500 index. This is the best single-day gain for the stock since August 28.

With today’s move, the stock has recovered all of Tuesday’s losses. The stock had ended 10 percent lower on Tuesday. Shares are also set to snap a four-day losing streak, during which it had declined over 12 percent.

Today’s gains for Indiabulls Housing Finance are on volumes that are 90 percent higher than their 20-day average. A total of 2.78 crore shares of the stock have already been traded, surpassing Tuesday’s volumes of 2.76 crore shares.

Shares are still trading above all of their key moving averages and its Relative Strength Index currently stands at 56.

Earlier in the day, 22.5 lakh shares of the company had exchanged hands in a large transaction worth Rs 40.8 crore. The number of shares exchanged amounts to 0.5 percent of the total equity.

The buyers and sellers in the transaction are still unknown.

Shares of Indiabulls Housing Finance are up 20 percent so far in 2023. The stock is still trading below its 52-week high of Rs 207.7, which it hit on August 31.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indiabulls Housing Finance to undergo rebranding exercise post promoter declassification

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indiabulls Housing Finance said it will be relinquishing the ‘Indiabulls’ brand.

The company said that with the completion of its de-promoterisation, its former promoter Sameer Gehlaut, who had established the Indiabulls brand, has been classified as a public shareholder from February 2023 and was no longer associated with the company in any other way. “Therefore, the continuance of the brand ‘Indiabulls’ by the company has become untenable and it will thus be relinquishing the ‘Indiabulls’ brand,” IHF said in an exchange filing.

IHF said its former promoter held stakes in or is/was engaged in businesses such as real estate, lending, pharma, broking, on-line sales, among others, under the ‘Indiabulls’ brand.

“With the re-branding exercise the company will move away from any perceptions of linkages with other iIndiabulls’ companies and their businesses, and will build its own identity unambiguously centred around its loan products, its target customer segments, and its stakeholders,” IHF said.

Indiabulls Housing Finance was de-promoterised in February this year, when the BSE and NSE approved the reclassification of Gehlaut and his trusts to the category of “Public” shareholders from “Promoter.” The approval came 10 months after he put submitted his application for the reclassification to the exchanges.

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Gehlaut and his trusts, with a holding of 9.66 percent in Indiabulls Housing made an application in April 2022 for the reclassification to public shareholder category. As a resultant, promoter shareholding post-reclassification in Indiabulls Housing is now nil and public shareholding at 100 percent.

As of June 30, 2023, Gehlaut’s shareholding in the company is down to 4.8 percnet. “Since June 30, 2023, from the disclosures made by Gehlaut’s entities, it is noted that he continues to pare his stake, and is no longer among the top shareholders of the company. In all, since December 2021, Gehlaut has sold over 18 percent of his holding in the company, and is likely to entirely exit his holding,” IHF said in the exchange filing.

Life Insurance Corporation (LIC) of India is the largest institutional shareholder in IHF, having around 8.5 percent holding. Vanguard, Blackston Inc, TreeTop Asset Management, Blackrock, PIMCO are some of the other large foreign institutional shareholders, the company said.

IHF relinquishing the indiabulls brand and distancing itself from erstwhile promoter and his entities… and how it’s a board run company now with promoter continuing to pare stake etc.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indiabulls Housing Share Price: Stock jumps nearly 8% on plans to raise Rs 35,000 crore, dividend payout

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indiabulls Housing Finance Ltd. shares surged more than 8 percent in intraday trade on Friday after the company said that it would issue non-convertible debentures (NCDs) on a private placement basis.

The company announced on Friday that it will raise funds worth not more than Rs 35,000 crore by issuing either NCDs or bonds or both in one or multiple tranches, not in the nature of equity shares.

The proposal will be subject to the approval of Indiabulls Housing Finance’s shareholders and the fund will be raised within one year after the authorisation.

Indiabulls Housing Finance has also recommended a final dividend of Rs 1.25 per share at the meeting of its Board of Directors held on July 28, 2023. The total aggregates to 62.5 percent on the face value of Rs 2 per piece for financial year 2023.

This final dividend will also be subject to the approval of Indiabulls Housing Finance’s members at the company’s upcoming AGM.

“The Company is emerging from a phase of consolidation over the last few years. As the Company gets back on the path of growth, the Board has resumed payment of dividends to shareholders,” Indiabulls Housing Finance said.

Further, Indiabulls Housing Finance has appointed Rajiv Gupta, the Director  and Chief Executive Officer (CEO) of LICHFL Asset Management Company Ltd. as the Nominee Director of Life Insurance Corporation of India (LIC), on its Board.

Shares of Indiabulls Housing Finance are trading 7 percent higher at Rs 136.40.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indiabulls Housing Finance posts 14% fall in profit, net interest income surges to Rs 734 crore

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indiabulls Housing Finance on Monday reported 14.4 percent fall in net profit at Rs 262.6 crore for the March quarter versus Rs 306.8 crore year-on-year (YoY). The net interest income (NII), however increased by 13.5 percent to Rs 733.6 crore versus Rs 646.3 crore YoY. The company’s consolidated revenue from operation fell by 5.2 percent to Rs 2,075 crore as compared to Rs 2,189 crore in the year-ago period.

The company’s board approved the issuance and allotment of secured and/or unsecured, listed and/or unlisted, redeemable non-convertible debentures on a private placement or a public issue basis, for an amount of Rs 5,000 crore.

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As on March 31, 2023, the company’s net worth stood at Rs 16,028.93 crore, outstanding borrowing was Rs 31,114.47 crore, debt-equity ratio was 2.96, total debts to total assets was 0.70, net profit margin was 11.10 percent, gross non-performing assets (NPAs) were 3.71 percent and net NPAs were 2.48 percent.

The shares of Indiabulls Housing Finance, on Monday, ended over 1 percent higher at Rs 113.70 on BSE.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indiabulls Housing Finance divests its entire stake in mutual fund business

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indiabulls Housing Finance in an exchange filing has informed that it has divested its entire stake in mutual fund business, being carried out by Indiabulls Asset Management Company Ltd. and Indiabulls Trustee Company Ltd to Nextbillion Technology Private Ltd, part of the Groww group. This is at an aggregate purchase consideration of Rs 175.62 crores.

The company has received all necessary approvals in relation to the transaction and the closing date for this transaction is May 3, 2023.

As on December 31, 2022,  on a consolidated basis, the company had a balance sheet of Rs 74,106 crores and net worth of Rs 17,269 crores. The company’s net gearing was at 2.3 times, with capital adequacy of 33.8 percent.

The stock is trading about 2 percent higher on the exchanges at 10am on Wednesday.

Also read: Exchanges approve reclassification of Indiabulls Housing promoter Sameer Gehlaut to public

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow