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| Konstantin Evdokimov/Unsplash |
With a revision
in outlook back to ‘Stable’, reflecting Indiabulls Housing Finance’s
strengthened capital position and a further capital mobilization capacity in the
medium term, the mortgage firm aims to raise up to INR 1,000 crore via a public
issue of local bonds as demand for home loans is expected to surge in the
coming quarters.
What lies ahead?
Indiabulls
Housing Finance currently disburses around INR 800 crore of loans each month
and expects that this number will more-than-double to INR 2,000 crore by the end
of this financial year. The firm had recently reported a 3.2 percent rise in
its consolidated net profit to INR 282 crore during the April-June quarter – a prominent
signal of demand recovery.
What’s on Offer?
The retail
sale of debt securities will open for subscription Monday, September 06, 2021 -
the first such sale by the issuer after 2018. The
4 categories of investors expected to take part in the sale of secured and
unsecured bonds are - qualified institutions, corporates, high net-worth
individuals and retail individuals.
Interest
rates may be offered in the range of 8.05-9.75 percent across two-, three-,
five- and seven-year maturity periods of these AA rated securities.
Existing Investors?
Backed by a healthy mix of institutional and retail investors; with the largest shareholder being Life Insurance Corporation of India - Asset Management Arm holding 10% of shares outstanding, while 51% of Indiabull Housing Finance’s ownership is controlled by the top 17 shareholders, meaning that no single shareholder has a majority interest in the ownership and the board is spread out and stable for future growth.The general public also holds a 36% stake in the company.