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Indiabulls Housing Finance is planning to raise up to $600 million by offering equity to institutional investors through qualified institutional placement (QIP).
The primary issue size is $500 million (Rs 3,330 crore) with an option to retain subscription of an additional $100 million. The dilution of equity stake that would take place with this issue ranges between 11.6 and 13.6 per cent.
According to market sources, the indicative offer price has been set at Rs 702 a share. On Tuesday, the stock ended at Rs 723.75 on the BSE, down 0.07 per cent compared to its previous close.
The Sebi’s floor price was Rs 701.71 a share after assuming a maximum five per cent discount. Bank of America Merrill Lynch, CLSA, SBI Capital Markets and Axis Capital are the arrangers to the issue. The net worth of Indiabulls group was Rs 19,335 crore at the end of March 2015. The loan book was Rs 54,021 crore at the end of June 2015.
The total revenues for the first quarter ended June 30 stood at Rs 2,024 crore with net profit of Rs 511 crore. It is the second biggest QIP in the current calendar year after IndusInd Bank, which had raised Rs 4,328 crore. The other major QIPs include HDFC Bank (Rs 2,000 crore), Bajaj Finance (Rs 1,400 crore) and DHFL (Rs 810 crore).
