Shares of Indiabulls Housing Finance gained 3 percent in two days to Rs 177 per share on the BSE on October 10 after the company proposed to buyback bonds maturing up to March 2024. The S&P BSE Sensex was 348 points or 0.5 percent up at 65,861 levels, as of 11:15 am.
So far this year, the stock of this home finance company has rallied 15 percent, as against 7 percent rise in the Sensex benchmark. On 31 August, 2023, the stock had touched its 52-week high of Rs 207 apiece.
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In an exchange filing on October 9, Indiabulls Housing said that the asset liability management of the company made offer to NCD holders to acquire NCDs maturing till March 31, 2024.
As per the filing, the company stated that their borrowings stood around Rs 35,000 crore and net debt to equity at 1.7x.
Thereafter, on October 10, the Indiabulls Housing condemned adverse rating action initiated by credit ratings agency CARE Ratings. The credit ratings agency revised long-term rating of the company to ‘CARE AA- ‘, ascribing a stable outlook. That apart, the rating for perpetual debt was revised to ‘CARE A+’ with a stable outlook and short-term rating was reaffirmed to ‘CARE A1+’
The company justified by stating that factors such as its improved capital position, vastly reduced debt repayment burden, low gearing, high liquidity coverage ratio, stable asset quality, and positive ALM going ahead – the primary constituency of ratings were not taken into consideration in the rating decision.
READ MORE: Cash Market | IndiaBulls Housing Finance shows a breakout-pullback trade setup
Last month, CRISIL had reaffirmed the company’s rating to ‘CRISIL AA/Stable’ on September 21, 2023, whereas ICRA revalidated the company’s rating at ‘ICRA AA/Stable’ on September 26, 2023.
On October 4, Capri Holdings sold shares of Indiabulls Housing for Rs 43 crore through an open market transaction.
According to the bulk deal data available with the National Stock Exchange (NSE), Capri Global Holdings offloaded 25 lakh shares, amounting to a 0.53 per cent stake in Indiabulls Housing Finance.
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