Indiabulls Housing Finance Shares Surge 2.52% as Debt Repayments Boost Confidence

30 Aug 2023 , 03:24 PM

Indiabulls Housing Finance Limited witnesses a 2.52 % jump in shares in today’s market. The rally follows the recent repayment of Rs 1,112.5 crore bonds and Rs 2,323 crore dollar-denominated external commercial borrowings.

Over the last week, the housing finance stock has gained nearly 23 %, driven by the repayment announcements. However, the stock underwent a 2 % correction on August 29.

The company repaid 10-year, Rs 1,112.5 crore bonds on August 28 and cleared Rs 2,323 crore of external commercial borrowings on August 24. These borrowings were sourced from various banks including Barclays, MUFG, Sumitomo Mitsui Trust, CTBC, ANZ, Bank of Taiwan, and more.

Indiabulls Housing Finance notes substantial debt repayments in Q2FY24. The company anticipates incoming loan repayments to exceed debt repayments by Rs 1,300 crore to Rs 1,800 crore each quarter. This surplus can be directed towards asset growth, as stated in an exchange filing dated August 28.

Indiabulls Housing Finance has repaid gross Rs 1,62,985 crore and net Rs 85,512 crore since September 2018. By the end of Q2FY24, the company’s borrowings are expected to reach Rs 36,000 crore, with net debt-to-equity at 1.8x.

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