Indiabulls Housing Finance Shares Surge 4% on Bond Repurchase Announcement

Indiabulls Housing Finance offered NCD holders the option to acquire NCDs maturing up to March 2024, with borrowings at Rs 35,000.
Indiabulls Housing Finance
Indiabulls Housing Finance

Indiabulls Housing Finance shares gained 4.8 per cent within just two days, reaching Rs 177 per share on the National Stock Exchange (NSE) on October 10. This surge followed the company's announcement of its intention to repurchase bonds set to mature by March 2024. The NSE Nifty displayed strength, gaining 193 points, equivalent to almost 1 per cent, and reaching 19,705 levels by 02:30 pm.

In an exchange disclosure on October 9, Indiabulls Housing Finance revealed that its asset liability management team extended an offer to Non-Convertible Debenture (NCD) holders, allowing them to acquire NCDs with maturities up to March 31, 2024. The company further reported its borrowings at approximately Rs 35,000 crore, maintaining a net debt-to-equity ratio of 1.7 times.

The company has recently submitted formal applications to the regulatory authorities for a change in its corporate name, seeking to transition from 'Indiabulls Housing Finance Limited' to 'Samman Capital.' They have also applied for a change in their regulatory status, seeking conversion from a 'Housing Finance Company' to a 'Non-banking Financial Company.'

On October 10, Indiabulls Housing expressed strong disapproval of CARE Ratings' adverse rating actions. CARE Ratings had revised the company's long-term rating to 'CARE AA-' with a stable outlook, while perpetual debt received a 'CARE A+' rating, also with a stable outlook. The short-term rating remained 'CARE A1+'. Indiabulls Housing argued that the rating failed to consider crucial factors such as improved capital position, reduced debt burden, low gearing, ample liquidity, stable asset quality, and positive asset liability management.

Last week, Capri Global Holdings sold Indiabulls Housing shares for Rs 43 crore through open market transactions. As per data from the National Stock Exchange (NSE), Capri Global Holdings liquidated 25 lakh shares, which represented a 0.53 per cent stake in Indiabulls Housing Finance.

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