Indiabulls Housing to buyback NCDs worth Rs 2,285 crore; stock rallies 8%

News reports say the company will conduct a buyback of all non-convertible debentures (NCDs) maturing in July and August totalling Rs 2,285 crore.

Shares of Indiabulls Housing Finance jumped as much as 7.8 per cent in the morning trade on Thursday after reports indicated that the company will conduct a buyback of all non-convertible debentures (NCDs) maturing in July and August totalling Rs 2,285 crore.

In an interview with CNBC-TV18 on Thursday, company's managing director and CEO Gagan Banga said Indiabulls Housing Finance's liquidity situation remained 'very strong', as it has raised around Rs 58,000 crore since September 2018 and has a cash buffer of Rs 28,000 crore. 

Banga further said the company has zero exposure to Dewan Housing Finance (DHFL) and Anil Dhirubhai Ambani group.

Last week, most of the Indiabulls Group stocks came under pressure after a plea was filed in the Supreme Court on June 10, seeking legal action against Indiabulls Housing Finance, Sameer Gehlaut and the directors for the alleged misappropriation of public money.

However, on June 13, Abhay Yadav, the petitioner, withdrew the writ petition in Supreme Court. In an affidavit, Yadav had said that he was not aware of the contents and allegations mentioned in the complaints or the petition, according to Indiabulls.

In April this year, Indiabulls Housing Finance announced merger with Lakshmi Vilas Bank (LVB). The merged entity, to be called Indiabulls Lakshmi Vilas Bank, will be among the top eight private banks in India by size and profitability, Indiabulls Housing Finance had said. The share swap ratio for the merger has been fixed at 1:0.14, which means that for every 100 shares of LVB held by shareholders, they will be entitled to receive 14 shares of Indiabulls Housing Finance. 

At 11:02 am, the stock of Indiabulls Housing Finance was trading at Rs 579 apiece on the BSE, up over 4 per cent as against a 0.45 per cent rise in the benchmark S&P BSE Sensex.