Indiabulls Housing Fin soars 8% on heavy volume; up 10% so far this week

About 4.8 million shares have changed hands on the BSE, which was 430 per cent higher than the average shares changing hands on the counter on the exchange in the past one week

Shares of Indiabulls Housing Finance surged 8 per cent in the intra-day trade, to quote at Rs 223 apiece, on the BSE on Wednesday on the back of heavy volume. At 12:25 pm, the stock was ruling 6.7 per cent higher at Rs 220.3 on the BSE, as against 0.03 per cent dip in the benchmark S&P BSE Sensex. A combined 46.31 million shares had changed hands on the counter on the NSE and BSE till the time of writing of this report. Of this, 4.8 million shares had changed hands on the BSE, which was 430 per cent higher than the average shares changing hands on the counter on the exchange in the past one week. 

On Tuesday, Business Standard reported that Indiabulls Housing Finance is in the final stages of negotiating a deal with Oaktree to raise $200 million (Rs 1,500 crore) in debt. "Like in the previous deal, Indiabulls will pledge some developer loans with the global stressed assets investor, which will come in as a senior lender. Oaktree will have the first right on projects’ cash flows," the report said.

Indiabulls had raised Rs 2,200 crore from Oaktree in June by refinancing part of its real estate deals with the US-based investor through non-convertible debentures. READ MORE

The stock of the housing finance company has already rallied 10 per cent on the BSE this week, as against 1.4 per cent gain in the benchmark Sensex. 

For the June quarter of FY21, Indiabulls Housing posted 65.5 per cent drop in its net profit at Rs 272.5 crore, compared with Rs 790 crore profit in the corresponding quarter of the previous fiscal. Its revenue from operations skid by 33.7 per cent to 2,574.6 crore from Rs 3,885 crore last year.

"Operations of all these segments were impacted over the past few years and consequent to Covid-19 pandemic are expected to be further significantly impacted, including erosion in the asset values of the collateral held by it," it said in a statement.

It warned that in the event the impact of pandemic is more severe or prolonged than anticipated, it will have a corresponding impact on the carrying value of the financial assets, results of operation and the financial position of the company.

However, striking an optimisitic note with the investors, Indiabulls Group company said the "phase of reduction in loan book and AUM is over and the loan book will start growing from here on" as per the company’s business plan that blends co-origination with banks for retail loans and with funds for developer loans as two important pillars going forward.