Indiabulls Housing Finance gained 3.1 per cent in early trade on Wednesday as the housing finance firm said that a board-approved committee had given the go-ahead to a capital-raising plan of up to Rs 50,000 crore through bonds.
The firm’s scrip climbed to a high of Rs 159.20 as against Rs 154.45 at the previous close on the National Stock Exchange.
As per the existing shareholders’ enabling authorization, valid up to July 28, 2022, the company can raise funds up to Rs 50,000 crore through the issuance of secured or unsecured non-convertible debentures (NCDs or bonds) in one or more tranches on a private placement basis.
“To enable the company to raise funds through issue of NCDs on or after July 28, 2022, the board constituted a committee at its meeting held on March 22, 2022, has authorized the company to raise funds through issue of NCD and/or bonds, in one or more tranches, on private placement basis up to the shareholders existing authorization of Rs 50,000 crore,” Indiabulls Housing Finance said in a regulatory filing.
The company said it will seek shareholders’ approval for the fundraise plan in its ensuing Extraordinary General Meeting (EGM) scheduled to be held on April 18, 2022.
In October-December, the company’s profit after tax dropped by 8 per cent to Rs 303 crore due to slower loan growth. It reported a PAT of Rs 329 crore in the year-ago period.
During the quarter under review, the company disbursed retail loans of around Rs 2,800 crore.