Indiabulls Housing board okays 62.5% dividend payout, rebranding plans

To Rs 35,000 cr via NCDs; to rebrand itself

Indiabulls Housing Finance Ltd (HFC) has reinstated dividend payouts, with the board endorsing a final dividend of Rs 1.25 per equity share (face value of Rs 2 each) for the financial year ended March 2023. This represents a 62.5 per cent dividend on the face value of the share.

The company has been going through a period of consolidation over recent years. As it returns to a growth trajectory, the board has resumed the distribution of dividends to shareholders. According to a BSE statement from HFC, the company is well capitalised, with a capital adequacy exceeding 23 per cent on a standalone basis and 31 per cent on a consolidated basis as of the end of March 2023. The company's stock closed 6.6 per cent higher at Rs 136.05 per share on BSE.

 

The board has also approved a proposal to seek shareholder approval for raising up to Rs 35,000 crore through the private placement of non-convertible debentures (NCDs). Additionally, the board gave the green light for the appointment of Rajiv Gupta, director and chief executive officer of LICHFL Asset Management Company Ltd, as a nominee director of Life Insurance Corporation of India (LIC) on its board. As of 30 June 2023, LIC is the largest bond holder of Indiabulls HFC, holding Rs 9,550 crore of the outstanding bonds, and is also the company's largest institutional shareholder with an 8.44 per cent stake.

The de-promoterisation process has been completed. The former promoter of the company, who established the Indiabulls brand, has been categorised as a public shareholder of the company since 22 February 2023 and no longer has any association with the company. As a result, the continued use of the "Indiabulls" brand by the company is no longer feasible and the company will thus be relinquishing the "Indiabulls" brand.

The rebranding effort will enable the company to dissociate from any perceived connections with other "Indiabulls" companies and their businesses. It intends to construct its own unique identity, firmly rooted in its loan products, target customer segments, and stakeholders.