Indiabulls Housing Finance shares zoom 9%; here’s why

Shares of Indiabulls Housing Finance rose as much as 9.4% to hit an intraday high of ₹139.60 apiece on the BSE, after the company said that its plans to raise ₹35,000 crore through NCDs (non-convertible debentures) and/or bonds.

The scrip opened at ₹128.95 on Friday, up 1.1% as against the closing price of the previous session at ₹127.55. The scrip closed higher by 6.66% at ₹136.05. In contrast to this, the broader BSE Sensex closed 0.16% or 106.62 points lower at 66,160.20. At present, the shares of the housing financier are trading 14.2% lower from the 52-week high of ₹158.60, which the company touched on December 30 last year. The shares of the company are trading 48.2% higher from the 52-week low of ₹91.80 which the company touched on March 29 this year. During the session, the company’s market capitalisation stood at ₹6,416.07 crore as more than 24.76 lakh shares exchanged hands on the BSE as against the two-week average of 5.39 lakh shares. In the past one month, three months and one year, the counter has given 17%, 26.42% and 18.43% in returns, respectively.

"As an enabling authorization, to seek shareholders' approval, to raise funds through the issue of NCDs and/or Bonds, not in the nature of equity shares, upto ₹35,000 Crore, in one or more tranches, on private placement basis, till one-year post receipt of shareholders' authorization in the ensuing AGM (annual general meeting)," says  the company.

The company has also recommended a final dividend of ₹1.25 per equity share translating to 62.5% on face value of ₹2 each for the financial year ended March 31, 2023.

"The company is emerging from a phase of consolidation over the last few years. As the company gets back on the path of growth, the Board has resumed payment of dividends to shareholders. The Company is also very well capitalized with capital adequacy in excess of 23% on a standalone basis and 31% on a consolidated basis as of the end of March 2023," it adds.

Notably, the company aims to resume consistent payment of dividends. "In the past, the Company has had a consistent dividend-paying track record. As the business has now stabilized and the Company gets back on the path of growth, subject to regulatory limits, the Company aims to resume consistent payment of dividends. It is the Company’s goal to deliver good returns to shareholders both on RoE ( return on equity) and on dividends," says the housing financier.

Indiabulls Housing Finance is yet to announce financial results for the April to June quarter of FY24. In the January to March quarter of FY23, the company's profit declined as much as 14.4% to ₹262.2 crore, as against ₹306.8 crore in the same period last year.