Indiabulls Housing Finance Gets Board Nod For Rs 7000 Cr Fund Mop-up
Tags : Press Room Indiabulls Housing Finance FUND board Gets Nod Mop-up
Indiabulls Housing Finance on 29th June said its board has approved a proposal to raise over ?7,000 crore through various means. This includes $275 million ( ?2,043.43 crore) by issuing equity shares or other instruments.
The company's fund mop-up plan is subject to shareholders' approval in the upcoming annual general meeting (AGM) to be held in late July. The board has approved issuance of unsecured, redeemable non-convertible debentures, with or without warrants in Indian rupees in one or more tranches for an aggregate amount up to ?5,000 crore on private placement basis or otherwise, Indiabulls Housing Finance said in a regulatory filing.
Additionally, $275 million is to be raised by way of private/public offerings of equity shares, compulsorily convertible debentures, foreign currency convertible bonds (FCCBs), among other instruments, in foreign currency, in one or more tranches.
The object of raising funds in US dollars is to augment the long-term resources of the company and to maintain sufficient liquidity for meeting funding requirements of its business activities, the housing financier said.
"Assuming full conversion of existing FCCBs, issuance of capital for USD 275 million, would result in dilution of approximately 12.5 per cent of the post issue diluted share capital of the company," Indiabulls Housing Finance said.
FCCBs are debt instruments issued in a foreign currency with an option to the bondholder to convert the bond into stock.