You are here: Home » Companies » News
Business Standard

Indiabulls Housing raises Rs 1,205 cr via QIP, stake sale in OakNorth

The non-banking finance company (NBFC) has raised Rs 682.87 crore through the QIP and Rs 522 crore from the partial stake sale

Indiabulls Housing Finance | QIP | Stake sale

Press Trust of India  |  New Delhi 

'Freak trade': Investors push up yields of Indiabulls Housing bonds to 43%
Indiabulls Housing Finance said the QIP had issue price of Rs 196.37 per equity share, which was at a discount of 5 per cent from the floor price of Rs 206.70 per share.

on Monday said it has raised about Rs 1,205 crore over the last few days through its qualified institutional placement (QIP) and partial in UK-based OakNorth Bank Ltd.

The non-banking finance company (NBFC) has raised Rs 682.87 crore through the and Rs 522 crore from the partial

"...the Securities Issuance Committee at its meeting held today i.e. September 14, 2020, has...approved the closure of the issue period of the issue (QIP) today pursuant to the receipt of application forms for an aggregate of 3,47,74,811 fully paid-up equity shares of the company and the funds in the escrow account from eligible qualified institutional buyers in accordance with the terms of the issue, which opened on September 9, 2020," it said in a regulatory filing.

said the had issue price of Rs 196.37 per equity share, which was at a discount of 5 per cent from the floor price of Rs 206.70 per share.

"Further, the company has sold a portion of its stake in OakNorth Holding Ltd (the wholly owning parent company of OakNorth Bank), to an existing sovereign shareholder of the bank for Rs 82 crore," it added.

The company had sold partial stake in OakNorth for Rs 440 crore to private equity investor HighSage Ventures LLC on September 10.

"We have sold partial stake in OakNorth for an aggregate amount of Rs 522 crore, to private equity investors, during the last one week. The sale proceeds will be accretive to the regulatory net worth and the CRAR (capital to risk weighted assets ratio) of the company," it said further.

OakNorth Bank was launched in September 2015 and Indiabulls had invested Rs 663 crore in November 2015 for a 40 per cent stake in the bank.

Within two years of this, in November 2017, Indiabulls Housing recouped its investment by selling about 10 per cent stake to the Government of Singapore's investment arm GIC for Rs 770 crore.

Stock of Indiabulls Housing closed at Rs 189.40 apiece on BSE, down 4.66 per cent.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, September 14 2020. 23:38 IST