20.7 C
New York
Thursday, June 24, 2021

Indiabulls Housing Finance to raise Rs 2,200 crore via share sale and divestment

Must read

Nasdaq, S&P 500 scale new peak as jobs recovery gains traction

Economy12 minutes ago (Jun 24, 2021 10:31AM ET) (C) Reuters. FILE PHOTO: People are seen on Wall Street outside the New York Stock Exchange (NYSE)...

After Florida building collapses, 51 residents unaccounted for, official says

2/2 (C) Reuters. A bunk bed is seen in a partially collapsed building in Miami Beach, Florida, U.S., June 24, 2021. REUTERS/Marco Bello 2/2 By Marco Bello...

U.S. weekly jobless claims fall; spending on equipment strong

(C) Reuters. FILE PHOTO: People line up outside a newly reopened career center for in-person appointments in Louisville, U.S., April 15, 2021. REUTERS/Amira Karaoud By...

Market Watch: As Sensex hovers near all-time high, should investors book profits?

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Atul PM. and here are the top headlines at...

MUMBAI: Indiabulls Housing Finance is raising about Rs 2,200 crore through a share sale and divestment of ownership held in the UK’s OakNorth Bank. The proceeds would boost operational capital at the home-financier even as Indian lenders brace for a likely increase in the number of stressed borrowers after an end to the repayment holiday.

The mortgage lender has launched a qualified institutional placement (QIP) offering to raise money from institutional investors, the company said in a stock exchange filing late Wednesday. Indiabulls will raise around Rs770 crore through the share sale, sources said.

About 15 funds, including HSBC, Nomura, Soros Fund Management, Morgan Stanley, and the UK-based Toscafund, could be among the potential investors in the QIP, people with knowledge of the matter told ET.

The share sale will close in a day or two.

Individual investors could not be contacted immediately.

A QIP is a fundraising route that allows listed companies to raise capital through equity or equity linked instruments quickly.

Indiabulls has set a floor price of ?206.7 per share. The stock was at Rs 194.90 apiece on the Bombay Stock Exchange, down 3.11% Thursday. The broader sensitive index Sensex is up 1.72%.

Separately, Indiabulls is planning to sell more than 5% in OakNorth Bank, where it had picked up 40% ownership nearly five years ago, market sources said. This should release about Rs 1,000 crore in cash for the lender.

“This company is sitting on a significant mark-to-market gain that Indiabulls wants to book now,” said an executive working in the fixed income space.

Indiabulls Housing Finance is likely to be left with just about 8% in OakNorth Bank after a series of such disinvestment moves.

Indiabulls Housing Finance did not respond to ET’s query immediately.

The company sold a portion of its stake in OakNorth Holding, the wholly owning parent company of OakNorth Bank, to HighSage Ventures LLC for Rs 440 crores.

The sale proceeds will be accretive to the regulatory net worth and the CRAR of the Company, it said in a notification to stock exchanges Thursday.

The amount is equivalent to about 3% of its holdings in the bank, said a market source.

- Advertisement -

Latest article

Nasdaq, S&P 500 scale new peak as jobs recovery gains traction

Economy12 minutes ago (Jun 24, 2021 10:31AM ET) (C) Reuters. FILE PHOTO: People are seen on Wall Street outside the New York Stock Exchange (NYSE)...

After Florida building collapses, 51 residents unaccounted for, official says

2/2 (C) Reuters. A bunk bed is seen in a partially collapsed building in Miami Beach, Florida, U.S., June 24, 2021. REUTERS/Marco Bello 2/2 By Marco Bello...

U.S. weekly jobless claims fall; spending on equipment strong

(C) Reuters. FILE PHOTO: People line up outside a newly reopened career center for in-person appointments in Louisville, U.S., April 15, 2021. REUTERS/Amira Karaoud By...

Market Watch: As Sensex hovers near all-time high, should investors book profits?

Welcome to ETMarkets Watch, the show about stocks, market trends and money-making ideas. I am Atul PM. and here are the top headlines at...

Up 25% Since its IPO, Will Applovin Continue to Rally?

Stock Markets12 minutes ago (Jun 24, 2021 10:30AM ET) (C) Reuters. Up 25% Since its IPO, Will Applovin Continue to Rally? Shares of leading marketing software...