Indiabulls Housing Shares Gain Over 6% On Plans To Raise Rs 35,000 Crore, Dividend Payout

Indiabulls Housing Finance Ltd (IBHFL) shares surged 9 per cent in Friday’s intra day trade after the company board approved the raising of funds through the issue of NCDs or bonds, not in the nature of equity shares, up to Rs 35,000 crore in one or more tranches on a private placement basis.

The non-banking financial company said it would raise the amount in a year’s time after the shareholder’s approval at the upcoming annual general meeting (AGM).

The Indiabulls Housing Board also recommended a final dividend of Rs 1.25 per equity share for financial year 2022–23. The share price rallied 9.09 per cent to touch a high of Rs 139.15 on the Bombay Stock Exchange (BSE). However, the stock is down 11 per cent year-to-date.

On Friday, the stock settled 6.43 per cent up at Rs 135.80 on the NSE.

The development comes a day after Societe Generale bought a 0.59-percent stake in the housing finance company. The Europe-based financial services group acquired 27.84 lakh equity shares at an average price of Rs 127.96 per share.

The company said it is emerging from a phase of consolidation over the past few years. The board has resumed payment of dividends to shareholders as the company is back on the path of growth.

Indiabulls Housing Finance is well capitalised, with a capital adequacy of more than 23 per cent on a standalone basis and 31 per cent on a consolidated basis at the end of March 2023 quarter.

"In the past, the company has had a consistent dividend paying track record. As business has now stabilised and the company gets back on the path of growth, subject to regulatory limits, it aims to resume the consistent payment of dividends. It is the company’s goal to deliver good returns to shareholders both on return on equity and on dividends," the company said in a statement.