Indiabulls Housing Finance Launches QIP With Floor Price of Rs 206.7 Per Share

Indiabulls Housing Finance was trading at Rs 201.175 on September 9 and its market cap stood at nearly Rs 8,600 crore. The firm’s share price has risen by nearly 27 per cent in the last three months. The QIP launch follows the trend of many banks and NBFCs hitting the market to raise funds to soften the hit of potential bad loans triggered by COVID-19.

The country’s third-largest home finance player witnessed an abrupt top management reshuffle in August with Sameer Gehlot stepping down as Executive Chairman to focus on the role of Chief Executive Officer of Indiabulls Ventures, another company that he promotes. According to regulations, an individual cannot hold executive positions in two listed entities, the firm said. Gehlot was replaced by former RBI Deputy Governor SS Mundra.

The Q1 net profit for India Bulls Housing Finance slipped from Rs 272.5 crore as compared to Rs 790 crore in the same period a year ago, reflecting a drop of 65.5 per cent. Its revenue from operations dropped by 33.7 per cent to 2,574.6 crore from Rs 3,885 crore a year ago. However, the company was optimistic and said it expected its loan book to start growing in the days ahead.

Recently, group firm IndiaBulls Real Estate and two subsidiaries of Embassy Group entered into a definitive agreement to merge their residential and commercial projects across markets to create one of the largest property development platforms in the country.