Indiabulls plans to sell shares to raise up to $1b

Visual from the company website. September 2015

Home financier Indiabulls Housing Finance Ltd on Tuesday said it plans to sell shares to institutional investors to raise as much as $1 billion ( around Rs.6,670 crore).

Indiabulls Housing will sell shares at a minimum price of Rs.738.64 apiece in the offering, which includes a base issuance of $500 million and a greenshoe option of an equivalent amount. A greenshoe option allows an issuer to sell more shares to meet investor demand.

The company’s shareholders on 7 September approved the qualified institutional placement (QIP), which was cleared by the company’s board on 24 April, Indiabulls Housing Finance informed the BSE.

In the June quarter, Indiabulls Housing Finance reported a 20.6% increase in net profit to Rs.511 crore from the year-ago period, helped by higher net interest income. Revenue during the period grew 27.4% to Rs.2,024.9 crore.

The company’s gross and net non-performing assets (NPAs) stood at 0.85% and 0.36% of total advances, respectively.

Indiabulls will be the sixth financial services firm this year to raise money through a QIP.

In July, private sector bank IndusInd Bank raised almost Rs.4,300 crore. In June, Bajaj Finance raised Rs.1,400 crore through a QIP. In February, HDFC Bank raised almost Rs.2,000 crore.

Capital First Ltd and Dewan Housing Finance Ltd also raised Rs.300 crore and Rs.810 crore, respectively, this year.

So far this year, 24 firms have raised Rs.12,895.8 crore through the QIP route, compared with 33 firms raising Rs.31,683.2 crore last year, according to data from primary market tracker Prime Database.

Shares of Indiabulls Housing Finance closed at Rs.723.75, down 0.07% on the BSE, while the benchmark Sensex closed at 25,317.87 points, up 1.7%.

(This article was first published on Livemint.com)

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

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  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.