Mumbai: India’s second biggest consumer finance firm by market value, Indiabulls Financial Services Ltd plans to raise $1 billion (Rs3,930 crore) to tap the rising demand from borrowers in an economy heading for a third year of 9% growth.
The Mumbai-based company, partly owned by Citigroup Inc., Merrill Lynch and Co. and Goldman Sachs Group Inc., will seek approval from its shareholders on 1 February, it said in a filing to the Bombay Stock Exchange (BSE) on Monday. It will target overseas investors by selling shares or bonds convertible into stock, the statement said.
Indiabulls, which initially sold shares in 2004, provides loans to developers as well as to buyers of homes and trucks, through more than 650 branches across India. The company is sharpening its focus on consumer finance, with plans to take public its securities trading company later this month.
Indiabulls shares closed at Rs868.40, down 3.38%, on BSE on Monday.