Indiabulls Housing Finance gains 5% as company plans to raise ₹1,000 crore through secured NCDs

Shares of Indiabulls Housing Finance climbed over 5 percent on Monday, November 28, as the company said that it was planning to raise up to ₹1,000 crore through a public issue of secured redeemable non-convertible debentures (NCDs).

During Monday’s trade, the stock opened at a price of Rs. 137.60 per share, a little lower against the previous close of Rs. 138.15 per share. However, it rallied in early trade to touch an intraday high of Rs. 145.80. 

At 11:50 am, the stock was trading at ₹143.65, up by 3.93 percent, on the NSE.

The stock touched a 52-week high of Rs. 279 on December 16, 2021 and a 52-week low of Rs. 89 on July 6, 2022, indicating that at the current level, the stock is trading nearly 63 percent above its 52-week low and 48 percent below its 52-week high.

The stock has grown over 14 percent in the last one month. In the past six months, it has given a positive return of nearly 20 percent. However, the stock has declined almost 38 percent in the last one year.

The coupon rate on the NCDs, each of ₹1,000 face value, will be in the 8.57-9.80 percent range, depending on the tenor (24 months, 36 months and 60 months), frequency of interest payments (annual, monthly and cumulative), and the category of investors, the housing finance company said in an exchange filing.

The base size of the NCD issue is ₹100 crore, with an option to retain an over-subscription of up to ₹900 crore. 

The issue will open on December 1 and close on December 22.

An investor will have to subscribe to a minimum of 10 NCDs (aggregating ₹10,000), and in multiples of 1 NCD ( ₹1,000) thereafter.

Technical analyst Mitessh Thakkar placed a ‘buy’ call on Indiabulls Housing Finance with a target price of Rs. 146 and stop loss at Rs. 132.50, CNBC-TV18 reported.

The firm reported a consolidated total income of ₹2,231.33 crore for the quarter ended September 30, 2022, up 7.39 percent from the previous quarter's total income of ₹2,077.72 crore and down 0.08 percent from the same quarter last year. In the most recent quarter, the company generated net profit after tax of Rs. 289.48 crore.

Indiabulls Housing Finance, established in 2005, is a mid-cap company with a market capitalisation of Rs. 6,515.11 crore working in the NBFC industry. The Indiabulls Group is an Indian conglomerate headquartered in Gurgaon, whose primary businesses are housing finance, consumer finance, and real estate. The Group also has a presence in wealth management, construction equipment rentals, pharmaceuticals and LED lighting, its website shows.

According to a Mintgenie poll, 3 analysts on average have a ‘HOLD’ call on the stock.