Shares of Indiabulls Housing Finance opened higher for the fourth consecutive session on Friday as the stock remained in focus ahead of its ₹900 crore debt sale beginning today. The share price of the mortgage lender has climbed as much as 7.3% in the last four sessions as compared to a 0.3% rise in the BSE Sensex.
On Friday, Indiabulls Housing Finance shares opened 0.9% higher at ₹105.80 against the previous closing price of ₹104.85 on the BSE. In the early deals, the stock rose as much as 2.2% to ₹107.25, while the market capitalisation climbed to ₹5,027 crore. In comparison, the BSE Sensex was trading 440 points, or 0.75%, higher at 59,350 levels, with all 30 heavyweights trading in the green zone.
The share price of Indiabulls Housing Finance trades 20% higher than its 52-week low of 89 touched on July 6, 2022, while it is down 41% from its 52-week high of 183.20 touched on April 7, 2022. The stock has fallen 30% in a year, while it shed 21% in a six-month period. In the last one month, the counter has lost 10%, while it plunged over 31% on a year-to-date (YTD) basis.
The Indiabulls group, which is primarily engaged in housing finance, consumer finance, and real estate businesses, plans to raise ₹900 crore through a public issue of secured, redeemable, non-convertible debentures (NCDs). The public issue, which opens today and closes March 17, has a base size of only ₹100 crore with a greenshoe option for an additional ₹800 crore.
The company is offering coupon rates ranging from 8.88% to 10.15% per annum. The NCDs have tenures of 24 months (series I, II & III), 36 months (series IV, V & VI), and 60 months (series VII & VIII). Post closure of the issue, the NCDs will be listed on BSE and NSE.
As per the company, at least 75% of the raised capital will be used for onward lending, financing, and for repayment of interest and principal of existing borrowings and the balance will be used for general corporate purposes.
At the end of December quarter of 2022, Indiabulls Housing Finance’s consolidated cash and cash equivalents stood at ₹3,717 crore and the borrowings (other than debt securities) were at ₹28,434 crore and had a loan book of ₹53,922 crore.
In the October-December period of the current fiscal (Q3 FY23), the company posted a net profit of ₹291 crore compared with ₹303 crore in the year ago period and ₹289 crore in the previous quarter. The total income stood at ₹2,340 crore versus ₹2,278 in Q3 FY22 and ₹2,231 crore in Q2 FY23.
