Mumbai: Mortgage financier Indiabulls Housing Finance Ltd said on Wednesday that it has launched a Qualified Institutional Placement Offer (QIP) to raise funds from institutional investors, the company said in a statement from the stock exchange.
According to a person familiar with the company’s fundraising plans, Indiabulls is looking to raise around ₹735 crore through the QIP.
A QIP is a fundraising route that allows publicly traded companies to raise capital through stocks or equity-linked instruments in a shorter period of time.
Indiabulls has set a minimum price of ₹206.7 per share. On Wednesday, the company’s shares closed at ₹201.15 each, 0.54% less on the BSE, while the benchmark Sensex closed trading at 38,193.92 points, 0.45% less.
The company intends to use the proceeds from the sale of shares to increase its capital adequacy and maintain sufficient liquidity to meet the financing requirements of its business activities, it said in an offering document filed on the stock exchanges.
IDFC Securities and SBI Capital Markets are advising Indiabulls Housing on fundraising.
In a separate filing, the company said it is in the process of exploring various options for a partial divestment of its equity stake in OakNorth Bank Ltd, in one or more tranches.
“The divestment will result in an increase in CRAR and free up capital to grow the company’s loan portfolio. 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 the Singapore Government-owned investment arm GIC for Rs770 crore.
Founded in 2015, OakNorth Bank has increased its deposits to just under £ 3bn and its loan book to more than £ 4bn, Indiabulls said.
Last month, Sameer Gehlaut, co-founder and president of Indiabulls Housing Finance, resigned from his current position at the mortgage lender. Gehlaut was replaced by SS Mundra, former deputy governor of the Reserve Bank of India, while Gehlot took over as chief executive of the subsidiary Indiabulls Ventures.
Gehlaut will continue as a 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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