Mortgage lender Indiabulls Housing Finance on Thursday disclosed on exchanges that its board will meet on November 11 to consider its fundraising programme. The board will consider fundraising by way of bond issuances in one or more tranches.
The disclosure on the exchanges came after the lender declared earlier in the day that it has further sold a portion of its stake in OakNorth Holdings for Rs 64 crore. The company will also declare its September quarter earnings on November 11.
Indiabulls Housing Finance has raised Rs 1,894 crore till now from the stake sale in OakNorth. Before that, it had raised Rs 683 crore through a qualified institutional placement (QIP). Overall, the lender has raised a total of Rs 2,577 crore as fresh equity between September and November this year. The company has also issued bonds of Rs 2,780 crore in the current fiscal till date.
The proceeds of the stake sale will be used for strengthening the capital adequacy ratio and making bond payments, which are due to mature this year. The capital adequacy ratio of lender stood at 27.94% at the end of June quarter.
The board of the lender had earlier taken shareholders’ approval on July 29 for raising around Rs 2,200 crore ($300 million) by issuing securities through qualified institutional placement (QIP) or through foreign currency convertible bonds (FCCBs) during the course of the next one year.
The housing finance company had posted a 65.5% year-on-year decline in net profit to Rs 272.84 crore in the June quarter. Similarly, net interest income (NII) declined 28.7% year-on-year to Rs 701 crore during June quarter.
The company had issued bonds of Rs 2,780 crore in the current fiscal till date. Indiabulls Housing Finance on Thursday closed 2.19%, up at Rs 144.70 per share on Bombay Stock Exchange (BSE).
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