Indiabulls Housing Share Price Jumps 3% on Bond Repurchase Plan

10 Oct 2023 , 01:53 PM

Indiabulls Housing Finance announced plans to repurchase bonds with maturities up to March 2024, which led to a 3% increase in two days in the company’s share price to Rs 177 a share on the BSE. As of 1:40 pm, the S&P BSE Sensex was up 610 points, or 0.93%, at 66,121 levels.

The stock of this home lending company has increased 15% so far this year, compared to a 7% rise in the Sensex benchmark. The stock had reached its 52-week high of Rs 207 per share on August 31, 2023.

Indiabulls Housing stated in an exchange statement on October 9 that the asset liability management department of the business has made an offer to holders of NCDs to purchase NCDs maturing on or before March 31, 2024.

According to the statement, the company’s borrowings were over Rs 35,000 crore, with a net debt to equity ratio of 1.7x.

After that, on October 10, the credit rating company CARE Ratings’ unfavourable rating action was denounced by Indiabulls Housing. The company’s long-term rating was updated by the credit rating agency to ‘CARE AA-,’ with a stable outlook. Aside from that, the short-term rating was confirmed at ‘CARE A1+,’ and the rating for perpetual debt was revised to ‘CARE A+’ with a stable outlook.

The company provided this justification by claiming that the rating decision did not take into account factors such as its improved capital position, significantly reduced debt repayment burden, low gearing, high liquidity coverage ratio, stable asset quality, and positive ALM going forward – the main constituent of ratings.

On September 21, 2023, CRISIL updated the company’s rating to ‘CRISIL AA/Stable,’ while ICRA updated the company’s rating to ‘ICRA AA/Stable’ on September 26, 2023.

In an open market transaction on October 4, Capri Holdings sold shares in Indiabulls Housing for Rs 43 crore.

The National Stock Exchange (NSE) has bulk deal data that shows Capri Global Holdings sold 25 lakh shares, or 0.53% of Indiabulls Housing Finance, according to the data.

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