Taking advantage of a strong cash position on its balance sheet, Indiabulls Housing Finance has planned to buy back debentures and masala bonds worth Rs 2,705 crore maturing in September and October 2019.
It has already bought back non-convertible debentures worth Rs 2,173 crore maturing in July and August 2019.The company intends to buy out non-convertible debentures maturing in September 2019 aggregating to Rs 1,375 crore. These include Rs 660 crore of NCDs issued by way of public issue.
The company is also giving early redemption option to investors to buy back Rs 1,330 crore of masala bonds maturing in October.On the back of strong cash position, the company offers investors to buyback (early redemption) of NCDs and masala bonds, subject to applicable laws and debenture/bond holders consent, Indiabulls said in a statement said. The company has already initiated the approval process with the Reserve Bank for the early redemption of the masala bonds, it added.As on May 31, 2019, the company holds cash and cash equivalents of Rs 28,150 crore ($4bn). The Company’s Capital Adequacy Ratio (CRAR) as at March 31, 2019, is over 26 per cent, and net gearing is at four times.
It carries “AAA” long-term rating from CRISIL, ICRA and CARE.
Indiabulls Housing Finance and Indiabulls Commercial Credit Limited (ICCL) are slated to merge with Lakshmi Vilas Bank Limited (LVB). The Competition Commission of India (CCI) has approved the proposed merger.
IBHFL will hold about 90.5 per cent of the post-merger enhanced equity capital of the merged entity, while shareholders of LVB will hold around 9.5 per cent.
ICCL, a non-deposit taking NBFC registered with the RBI, is focussed on long-term secured mortgage-backed loans. Its merger with LVB will be in the overall interest of the company and will help it to utilise capital more efficiently than as a standalone NBFC.