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.