Indiabulls Housing to raise 2,200 Cr via QIP
The mortgage lender has launched a qualified institutional placement (QIP) offering to raise money from institutional investors. Indiabulls Housing Finance is raising about Rs 2,200 crore through a share sale and divestment of ownership held in the UK’s OakNorth Bank. The proceeds would boost operational capital at the home-financier even as Indian lenders brace for a likely increase in the number of stressed borrowers after an end to the repayment holiday. About 15 funds, including HSBC, Nomura, Soros Fund Management, Morgan Stanley, and the UK-based Toscafund, could be among the potential investors in the QIP. The share sale will close in a day or two. A QIP is a fundraising route that allows listed companies to raise capital through equity or equity linked instruments quickly. Indiabulls has set a floor price of 206.7 per share. The stock was at Rs 194.90 apiece on the Bombay Stock Exchange, down 3.11% Thursday. The broader sensitive index Sensex is up 1.72%. Separately, Indiabulls is planning to sell more than 5% in OakNorth Bank, where it had picked up 40% ownership nearly five years ago, market sources said. This should release about Rs 1,000 crore in cash for the lender. Indiabulls Housing Finance is likely to be left with just about 8% in OakNorth Bank after a series of such disinvestment moves.
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