Indiabulls Housing Finance Ltd Plans to Raise ₹10,000 Crore

On March 15, 2024, Friday, Indiabulls Housing Finance Ltd informed the exchanges that the board of the company 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.

Details of the Fundraise

Indiabulls Housing Finance Ltd informed the stock exchanges in a filing that the board approved the fundraise, 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.

They further added that the total funds to be raised are up to ₹10,000 crore only, or its equivalent in USD or other currencies, in one or more tranches and/or issuances, to eligible investors, domestic or international, as per applicable provisions of the Companies Act, 2013, and other regulatory guidelines.

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

On March 6, 2024, Gagan Banga, the Vice Chairman and Managing Director of Indiabulls Housing Finance, stated that the company’s legacy book, which they will eventually run down, is worth ₹25,000 crore. He also added that he is expecting a return on assets (ROA) for Indiabulls Housing to be at 3% for the financial year 2026 and that he will cap the leverage by 2x.

About Indiabulls Housing Finance Ltd 

Indiabulls Housing Finance Ltd is registered with and regulated by the National Housing Bank (NHB). The company is involved in the business of providing home loans and loans against property. Indiabulls Housing Finance is India’s third-largest non-bank mortgage lender. As of March 2023, the company has collectively disbursed loans of more than ₹3 lakh crore.

On March 15, 2024, the share price of Indiabulls Housing Finance Ltd opened at ₹169.00 and touched the day’s high at ₹172.40 as of 1:38 PM.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.