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Indiabulls Housing Finance to raise Rs 1,000 crore through public issue, will open for issuance of bonds tomorrow



Shares of Indiabulls Housing Finance closed at Rs 250.70, up 1.48 per cent on the BSE.

Mortgage lender Indiabulls Housing Finance announced that the public issue of its bonds will open tomorrow, December 9 and will raise up to Rs 1,000 crore – the proceeds of which will be used for the growth of its business. According to a regulatory filing by Indiabulls Housing Finance to the stock exchanges today, the base size of the issue is Rs 200 crore, with an option to maintain oversubscription up to Rs 800 crore, taking the total to Rs 1,000 crore.

The face value of secured, redeemable, non-convertible debentures (NCDs) is Rs 1,000 each. The issue opens on December 9 and closes on December 20, 2021 with an option to close early.

“The net proceeds of the issue will be used (at least 75 percent) of the principal and interest of the Company for further borrowing, financing, and repayment of the Company’s existing borrowings – and the remainder (up to 25 percent) for general corporate purposes, Indiabulls Housing Finance said in its statement.

The non-convertible debentures are proposed to be listed on stock exchanges, with BSE as the designated exchange for the issue. The bond is rated “AA/Stable” by CRISIL Ratings and AA+ by Brickworks Ratings.

Bonds have tenors of 24, 36 and 60 months, with yields ranging from 8.35 per cent to 9.26 per cent, depending on the category. The principal managers of the issue are Edelweiss Financial Services Limited, IIFL Securities Limited and Trust Investment Advisors Private Limited.

Indiabulls Housing Finance is the second largest housing finance company in the country. The Gurugram headquartered banking company is controlled by National Housing Bank.

On Wednesday, December 8, Indiabulls Housing Finance shares closed at Rs 250.70, up 1.48 per cent on the BSE.


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