Indiabulls Housing Finance said its board of directors has approved a proposal to raise over Rs 7,000 crore through various financial instruments.
The company’s fund mop-up plan is subject to shareholders’ approval in the upcoming annual general meeting to be held in late July.
Sources of funding
The company said, the sources includes 275 million dollars (about Rs 2,043 crore) by issuing equity shares or other instruments, the company said in a statement.
The plan will also include issuance of unsecured or secured, listed or unlisted, redeemable non-convertible debentures with or without warrants or any other similar security denominated in Indian rupees in one or more tranches for Rs 5,000 crore (equivalent currency) on private placement basis or otherwise.
Additionally, USD 275 million is to be raised by way of private/public offerings of equity shares, compulsorily convertible debentures, foreign currency convertible bonds (FCCBs), among other instruments, in foreign currency, in one or more tranches.
Object
The object of raising funds in US dollars is to augment the long-term resources of the company and to maintain sufficient liquidity for meeting funding requirements of its business activities.
Comment from company
“Assuming full conversion of existing FCCBs, issuance of capital for USD 275 million, would result in dilution of approximately 12.5 per cent of the post issue diluted share capital of the company.”
FCCBs are debt instruments issued in a foreign currency with an option to the bondholder to convert the bond into stock.
Impact on Stocks
At 11:15 am, its stock was quoting 0.6 per cent higher at Rs 265.50 per unit on the BSE.
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