MUMBAI: Indiabulls Housing Finance Ltd (IBHFL) stock shot up today high of Rs 255.90 before closing at Rs 238.65, up 8.9 per cent on the back of the company’s announcement about fundraising plans and the government’s package for the real estate sector. IBHFL’s board approved a non-convertible debenture (NCD) of up to Rs 10,000 crore or more tranches and also $1 billion NCDs with warrants through qualified institutions placement (QIP).
The fund raising plans come at a time when the company has been buying back bonds in early redemption in an effort to instil confidence among investors. During the July-September quarter, IBHFL said it had bought back bonds worth Rs 3,677 crore. During the quarter loan book fell by 29 per cent Y-o-Y to Rs 82,135 crore. According to analysts, the firm indicated it plans to disburse home loans and loans against property worth Rs 40,000 crore in next one year. Changing its business model, IBHFL has indicated of the total loans to disburse Rs 15,000 crore would be via co-origination, Rs 15,000 crore via securitization, and Rs 10,000 crore from its own book.
In October, IBHFL board-approved plan to buyback of equity shares and sought SEBI approval for the same. It said the firm’s capital adequacy at 27.8 per cent at June end was one of the highest among the NBFCs. “The buyback represents excellent use of the firm’s capital, given its high capital adequacy ratios and the liquidity available with the company,” it said. The move came about after its proposed merger with Lakshmi Vilas Bank fell.