Indiabulls Housing Finance board approves raising Rs 3,997 cr

Indiabulls Housing Finance Ltd (IHFL) said the company board today approved an allotment of over 5.6 crore equity shares worth Rs 3,996.79 crore to qualified institutional buyers (QIBs).
"...Securities Issue Committee of the Board of Directors of the Company has, at its meeting on September 15, 2015, approved the issue and allotment of 56,934,372 equity shares to eligible qualified institutional buyers at the issue price of Rs 702 per equity share, aggregating to approximately Rs 39,967.9 million," it said in a filing on BSE.
At its Annual General Meeting held on September 7, the board of the company had approved to issue and allot the said number of shares to QIBs on preferential basis.

Company's board had approved to raise up to Rs 6,674.45 crore (equivalent to USD 1 billion) through a qualified institutions placement to QIBs.
The proceeds from the issue will be used to fulfil the capital adequacy requirements and funding needs of the company.
Besides, the proceeds will also be used to meet company's general corporate purposes, investment of funds in interest or dividend bearing instruments and securities, including deposits with banks and investment in mutual funds.
Shares of the company today closed at Rs 749.70 apiece on BSE, down 2.01 per cent from the previous close.