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Mumbai: Mortgage financier Indiabulls Housing Finance Ltd on Wednesday said that has launched a so-called qualified institutional placement (QIP) offering to raise funds from institutional investors, the company said in a stock exchange filing.
According to a person aware of the company’s fundraising plans, Indiabulls is looking to raise around ₹735 crore through the QIP.
A QIP is a fundraising route that allows listed companies to raise capital through equity or equity linked instruments in a shorter time frame.
Indiabulls has set a floor price of ₹206.7 per share. On Wednesday, the company’s shares closed at ₹201.15 apiece, down 0.54% on the BSE, while the benchmark Sensex closed trading at 38,193.92 points, down 0.45%.
The company intends to use the proceeds from the share sale to augment its capital adequacy and to maintain sufficient liquidity for meeting funding requirements of its business activities, it said in a offer document filed with the stock exchanges.
IDFC Securities and SBI Capital Markets are advising Indiabulls Housing on the fundraise.
In a separate filing, the company said that it is in the process of exploring various options for a partial divestment of its equity shareholding in OakNorth Bank Ltd, in one or more tranches.
“The divestment shall result in boosting CRAR and shall free up capital to grow the loan book of the company. The company had invested ₹663 crore in November 2015 for a 40% stake in the bank. Within two years of this, in November 2017, the company recouped its investment by selling approximately 10% of the bank to Government of Singapore owned investment arm GIC for Rs770 crores.
Founded in 2015, OakNorth Bank has grown its deposits to just under £ 3 billion and its loan book to over £ 4 billion, Indiabulls said.
Last month, Sameer Gehlaut, co-founder and chairman of Indiabulls Housing Finance, stepped down from his current position in the mortgage lender. Gehlaut was replaced by SS Mundra, former deputy governor of Reserve Bank of India, while Gehlot took charge as the chief executive of subsidiary Indiabulls Ventures.
Gehlaut will continue as non-executive, non-independent director of Indiabulls Housing Finance and will focus on growing the consumer finance and healthcare business through Indiabulls Ventures.
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