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Indiabulls Housing shares surge 17% after the firm offers to pre-pay NCDs

In a stock exchange filing, the company said it will also evaluate further pre-mature redemption of its NCDs from time to time.

October 18, 2019 / 04:30 PM IST
Indiabulls Housing Finance case: The company was accused of siphoning Rs 98,000 crore of public money. A petition was filed before the Supreme Court in June seeking legal action against the company, its chairman and directors. It was alleged that the chairman and the directors siphoned the money for their personal use. The legal proceedings in the matter are currently on. (File image)

Indiabulls Housing Finance case: The company was accused of siphoning Rs 98,000 crore of public money. A petition was filed before the Supreme Court in June seeking legal action against the company, its chairman and directors. It was alleged that the chairman and the directors siphoned the money for their personal use. The legal proceedings in the matter are currently on. (File image)

 
 
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Extending the gains into the second consecutive session, shares of Indiabulls Housing Finance closed with a  sharp gain of 17.42 percent at Rs 231.50 on BSE on October 18 after the company offered pre-mature redemption of all non-convertible debentures (NCDs) maturing in November and December this year.

In the two sessions of gains, the stock has jumped 34 percent.

In a stock exchange filing, the company said it will also evaluate further pre-mature redemption of its NCDs from time to time.

"The Company hereby issues an offer to all Debenture holder(s) for pre-mature redemption of its NCDs maturing in November and December 2019 at par," the filing said.

Indiabulls Housing Finance (IBH) continues to maintain strong liquidity with cash and cash equivalents at around 20 percent of its total assets as of October 10, 2019, it added.

"The Company has aggregate liquidity of more than Rs 18,500 crore as on October 10, 2019, which provides around 100 percent cover over IBH's debt repayments till September 2020," it added further.

On October 16, the company said rating agency CRISIL had reaffirmed its long-term and short-term ratings.

"The rating committee of CRISIL has reaffirmed the long-term rating of Indiabulls Housing Finance at “CRISIL AA+”. The short-term rating has been reaffirmed at “CRISIL A1+”. The watch resolution of negative outlook follows the announcement of RBI not approving the merger of the company with Lakshmi Vilas Bank," Indiabulls Housing said in a BSE filing," the company said.

While reaffirming the ratings and resolving the rating watch, CRISIL, as IBH claimed, noted that IBH continues to maintain strong liquidity with cash and cash equivalents at around 20 percent of total assets as of October 10, 2019. The company has aggregate liquidity of more than Rs 18,500 crore as on October 10, 2019, which provides around 100 percent cover over IBH’s debt repayments till September 2020.

"There seem to be signs of improvement in the first fortnight of October 2019 with IBH having received sanctions to raise Rs 5,200 crore via term loans, working capital lines, commercial papers and securitization lines," IBH said, adding this was another point noted by CRISIL.

Meanwhile, IBH has filed a criminal complaint with the Mumbai Police against some persons for spreading wrong information about the company.

According to a separate release filed with the exchanges, the accused persons, “have hatched a pre-planned criminal conspiracy with intent to cause wrongful loss to Indiabulls Housing Finance Limited, its shareholders and investors.”

Moneycontrol News
Tags: #BSE #stocks
first published: Oct 18, 2019 03:36 pm

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