The company's shareholders on 7 September approved the qualified institutional placement
Mumbai: Home financier Indiabulls Housing Finance Ltd on Tuesday said it plans to sell shares to institutional investors to raise as much as $1 billion ( around ₹ 6,670 crore).
Indiabulls Housing will sell shares at a minimum price of ₹ 738.64 apiece in the offering, which includes a base issuance of $500 million and a greenshoe option of an equivalent amount. A greenshoe option allows an issuer to sell more shares to meet investor demand.
The company’s shareholders on 7 September approved the qualified institutional placement (QIP), which was cleared by the company’s board on 24 April, Indiabulls Housing Finance informed the BSE.
In the June quarter, Indiabulls Housing Finance reported a 20.6% increase in net profit to ₹ 511 crore from the year-ago period, helped by higher net interest income. Revenue during the period grew 27.4% to ₹ 2,024.9 crore.
The company’s gross and net non-performing assets (NPAs) stood at 0.85% and 0.36% of total advances, respectively.
Indiabulls will be the sixth financial services firm this year to raise money through a QIP.
In July, private sector bank IndusInd Bank raised almost ₹ 4,300 crore. In June, Bajaj Finance raised ₹ 1,400 crore through a QIP. In February, HDFC Bank raised almost ₹ 2,000 crore.
Capital First Ltd and Dewan Housing Finance Ltd also raised ₹ 300 crore and ₹ 810 crore, respectively, this year.
So far this year, 24 firms have raised ₹ 12,895.8 crore through the QIP route, compared with 33 firms raising ₹ 31,683.2 crore last year, according to data from primary market tracker Prime Database.
Shares of Indiabulls Housing Finance closed at ₹ 723.75, down 0.07% on the BSE, while the benchmark Sensex closed at 25,317.87 points, up 1.7%.