Wednesday, September 9, 2020

Indiabulls Housing may raise Rs 1,000 cr via QIP, divestment in OakNorth

 

Indiabulls Housing Finance is aiming to raise up to Rs 1,000 crore through a QIP launched on Wednesday as well as partial divestment of its stake in UK-based OakNorth Bank in tranches, sources said.



Indiabulls Housing Finance is aiming to raise up to Rs 1,000 crore through a qualified institutional placement (QIP) launched on Wednesday as well as partial divestment of its stake in UK-based OakNorth Bank in tranches, sources said.
"In this, Rs 500 crore (about USD 68.13 million) each is targeted to be raised through the QIP and divestment in OakNorth Bank in next two-three days," a source said.

The non-banking finance company (NBFC) intends to raise more capital during this month, another person privy to the fund raise plans said.

The Securities Issuance Committee of the board at its meeting held on Wednesday approved the floor price for the QIP at Rs 206.70 per equity share, Indiabulls Housing Finance said in a regulatory filing.

At its extraordinary general meeting (EGM) held on July 29, the board had sought shareholders' approval for raising up to USD 300 million (about Rs 2,200 crore) by issuing securities through QIP or through foreign currency convertible bonds (FCCBs) during the course of the next one year.

"The company may offer a discount of not more than 5 per cent on the floor price so calculated for the issue (QIP)," Indiabulls Housing Finance said in the filing on Wednesday.

The committee will meet next week (September 14) to approve the issue price, including a discount, if any, for the equity shares to be allotted to the qualified institutional buyers (QIBs), the company said.

The intent of the QIP is to augment the long-term resources of the company and maintain sufficient liquidity for meeting funding requirements for its business activities, the company had said after the EGM in July.

 

 

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