Real estate finance company Indiabulls Housing Finance Ltd recorded a day of major volatility on December 16 following news of stake sale by founder Sameer Gehlaut but bulk buying by top investors reaffirmed its strong base.
The mortgage financier started the day with a gap-up opening of 7 per cent at Rs 282.60 on the BSE, which was also its intra-day high. The shares plunged about 6 percent intraday to Rs 248.55 before settling 4.2 percent down at Rs 254.3 at the close of trading on Thursday.
The shares had soared on reports that Gehlaut had sold 11.9 percent stake in the company through a block deal. “I will be resigning from the board of the company by end of the current fiscal ending March 31st, 2022, and will be completing the process of de-promotorisation of the company with requisite approvals,” he wrote in an email sent to the Indiabulls Housing Finance Board of Directors.
“We have made significant progress and today, in continuation of executing on that vision, I have done a seminal transaction: through my promoter companies, I have sold 11.9 percent in the company with a view to make the company a fully professionally managed and run company,” he wrote. “With this sale, I and my promoter companies now own 9.8 percent of the company.”
Gehlaut, Sameer Gehlaut IBH Trust and Inuus Infrastructure held 21.69 percent in Indiabulls Housing as of September 2021. Investors like Morgan Stanley and Abu Dhabi Investment Authority (ADIA) also have picked up significant stake in the company.
What Should Investors Do Now?
The counter recorded multiple block deals with some of the marquee investors on the NSE on Thursday.
“IndiaBulls Housing Finance shares have broken out this month, rising 16.4 percent, with the FNO stock being heavily traded,” said Sonam Srivastava, Founder, Wright Research, on December 16.
“The acquisition of shares by Blackstone and ADIA is a huge positive for the company. So, today’s fall could be attributed to call options being wound down or other long bets being exited after the culmination of the block,” she said.
Technical View
Palak Kothari, Research Associate, Choice Broking
On the weekly chart, the stock has given a breakout of falling channel formation and formed a good base around 205-200 levels which suggests an upside momentum in the counter. Though in today’s trading session, the stock has shown profit-booking from higher levels and formed an open bearish marabozu kind of candle which covers the last four trading session gains.
The stock has been trading above 21*50 Days Moving Averages with a bullish crossover as well as MACD is also reading with a positive crossover on a daily time frame. This suggests strength in the counter.
At present, stock has good support around 230-225 levels, while resistance comes at 275 levels. Crossing above the level can show 290-300 levels.
Pushkaraj Kanitkar, VP Equities, GEPL Capital
Indiabulls Housing in today’s trading session has shown Open=High pattern at Rs 279 levels, while it closed near the day’s low. This signifies a bearish sentiment in the movement. The high also happens to be highest of last few months, indicating that the high of Rs 279 will be a major barrier if not crossed convincingly in the immediate scale.
The VWAP of today as well as current week stands at Rs 261, which is the pivot point, and the stock price has closed below it. The setup seems pretty dicey and we would strategically advise to ‘buy’ only if the high of Rs 279 is crossed convincingly.
Manoj Dalmia Founder and Director, Proficient Equities
Price is taking Support at Rs 254 which was a resistance tested multiple times earlier. One may buy at current levels considering the support area. Aggressive investors can buy at current levels for a target of Rs 290 with a stop loss of Rs 240. Defensive investors may wait for a reversal sign near Rs 240.
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