Indiabulls Housing Finance Witnesses 3% On Bond Buyback Announcement

Shares of Indiabulls Housing Finance experienced a 3 percent upswing over the course of two days, reaching Rs 177 per share on the BSE as of October 10. The rise came on the heels of the company’s announcement of a proposed buyback of bonds maturing up to March 2024. Meanwhile, the S&P BSE Sensex saw a gain of 348 points or 0.5 percent, reaching the 65,861 level by 11:15 am.

In 2023, the stock of this home finance company has seen a robust rally of 15 percent, in contrast to the 7 percent increase in the Sensex benchmark. Back on August 31, 2023, the stock had reached its 52-week peak at Rs 207 per share.

In an exchange filing made on October 9, Indiabulls Housing disclosed that the company’s asset liability management extended an offer to NCD (Non-Convertible Debenture) holders to acquire NCDs maturing until March 31, 2024.

According to the filing, the company’s borrowings currently amount to approximately Rs 35,000 crore, with a net debt to equity ratio of 1.7x.

Subsequently, on October 10, Indiabulls Housing expressed its disapproval of the adverse rating action initiated by credit rating agency CARE Ratings. The agency had revised the company’s long-term rating to ‘CARE AA-‘ with a stable outlook. Furthermore, the rating for the perpetual debt was adjusted to ‘CARE A+’ with a stable outlook, while the short-term rating was reaffirmed at ‘CARE A1+.’

The company defended its position by highlighting that the rating decision did not take into account key factors, including the improved capital position, significantly reduced debt repayment burden, low gearing, high liquidity coverage ratio, stable asset quality, and positive asset-liability management (ALM) prospects going forward – all of which constitute the primary criteria for ratings.

Last month, CRISIL reaffirmed the company’s rating as ‘CRISIL AA/Stable’ on September 21, 2023, and ICRA revalidated the rating as ‘ICRA AA/Stable’ on September 26, 2023.

On October 4, Capri Holdings conducted an open market transaction, selling Indiabulls Housing shares for Rs 43 crore. According to data from the National Stock Exchange (NSE), Capri Global Holdings divested 25 lakh shares, representing a 0.53 percent stake in Indiabulls Housing Finance.

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