Indiabulls Housing Finance raises Rs 3,997 cr via QIBs

Indiabulls Housing Finance Ltd today said it has raised Rs 3,996.79 crore by allotting over 5.69 crore shares to qualified institutional buyers (QIBs).

The board of the company earlier this week had approved the issue price of Rs 702 for the allotment to the eligible QIBs, which was at a discount of up to 5 per cent against the floor price of Rs 738.64.

The issue had opened on Tuesday while it closed yesterday (Friday), the company said in a filing on BSE.

"...The issue price of Rs 702 per equity share at which equity shares will be allotted in the issue and is approved and the Securities Issue Committee is authorised to issue and allot up to 56,934,372 equity shares in the issue aggregating up to Rs 39,967.9 million," it said in the filing.

"Considering a discount of up to 5 per cent to the floor price, the Securities Issue Committee approved the issue price of Rs 702 in connection with the issue, to be allotted to eligible qualified institutional buyers in the issue," it said.

Company's board had approved to raise up to Rs 6,674.45 crore (equivalent to $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.