Indiabulls Housing Finance Announces Rights Issue Of 24.62 Crore Worth Rs 3,693 Crore; Details Inside

Indiabulls Housing Finance Ltd has greenlit a rights issue of shares, targeting a fund infusion of Rs 3,693 crore to bolster its financial position, according to an official exchange filing on Sunday.

The company, headquartered in India, will be issuing 24.62 crore rights shares with a face value of Rs 2 each, all priced at Rs 150 per rights equity share. This offering represents a substantial 24.6% discount on the closing price of the stock recorded last Thursday.

Investors eager to participate in this opportunity will need to pony up Rs 50 per rights equity share during the application process. Furthermore, the outstanding subscription money is slated to be called within 12 months from the date of share allotment.

February 1, 2024, has been set as the crucial record date, serving as the benchmark for determining the eligibility of shareholders who will be entitled to receive the rights shares. It's worth noting that only individuals who own shares of the company as of the record date will be eligible to partake in the rights issue. These rights shares are strategically priced at a discount to the prevailing market rates.

The rights issue by Indiabulls Housing Finance is scheduled to kick off on February 7 and will conclude on February 13, 2024. Additionally, the on-market renunciation period, where existing shareholders have the option to relinquish their rights on the market floor for a potentially better price, is set to take place between February 7 and February 8.

Existing shareholders of Indiabulls Housing Finance will be entitled to receive one rights equity share for every two paid-up equity shares they currently hold.

This financial manoeuvre comes in the wake of the company's board approving a plan to raise up to Rs 5,000 crore, or an equivalent sum in US Dollars, via various funding channels. The move echoes a broader trend in the financial sector, with other giants like Grasim, an Aditya Birla Group company, recently announcing a Rs 4,000 crore rights issue, scheduled to close on January 29.

Despite the recent market fluctuations, Indiabulls Housing Finance remains optimistic about its trajectory. The company's shares concluded 5% higher on Thursday, showcasing resilience amid market challenges. Although there has been an 8% dip in the stock's performance this month, the larger picture reveals a remarkable 70% surge in the last 12 months.