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Last Updated : Oct 17, 2019 05:28 PM IST | Source: Moneycontrol.com

Indiabulls Housing shares jump 7% after CRISIL reaffirms ratings

The rating committee of CRISIL has reaffirmed the long-term rating of Indiabulls Housing Finance at “CRISIL AA+”. The short-term rating has been reaffirmed at “CRISIL A1+”.

After three consecutive sessions of losses, shares of Indiabulls Housing Finance (IBH) traded in positive territory in morning trade on October 17, jumping about 7 percent on BSE, a day after the company said CRISIL has reaffirmed its long-term and short-term ratings.

"The rating committee of CRISIL has reaffirmed the long-term rating of Indiabulls Housing Finance at “CRISIL AA+”. The short-term rating has been reaffirmed at “CRISIL A1+”. The watch resolution of negative outlook follows the announcement of RBI not approving the merger of the company with Lakshmi Vilas Bank," Indiabulls Housing said in a BSE filing on October 16.

While reaffirming the ratings and resolving the rating watch, CRISIL, as IBH claimed, noted that IBH continues to maintain strong liquidity with cash and cash equivalents at around 20 percent of total assets as of October 10, 2019. The company has aggregate liquidity of more than Rs 18,500 crore as on October 10, 2019, which provides around 100 percent cover over IBH’s debt repayments till September 2020.

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"There seem to be signs of improvement in the first fortnight of October 2019 with IBH having received sanctions to raise Rs 5,200 crore via term loans, working capital lines, commercial papers and securitization lines," IBH said, adding this was another point noted by CRISIL.

Meanwhile, IBH has filed a criminal complaint with the Mumbai Police against some persons for spreading wrong information about the company.

According to a separate release filed with the exchanges, the accused persons, “have hatched a pre-planned criminal conspiracy with intent to cause wrongful loss to Indiabulls Housing Finance Limited, its shareholders and investors.”

The company said the accused persons operate from different parts of the country and since they are aware of the impending false, malicious messages, they, "create sell positions in the shares of Indiabulls, few days prior to release /publish of false and frivolous tweets, messages etc. on social media and seek unlawful gain for themselves. (sic.)"

“The Company has already provided and is also constantly assisting the Police by providing details and names of various Twitter handles/ Whatsapp Groups and persons intentionally involved in mass forwarding of the messages with blatantly false information,” stated the release.

As per the release, the police authorities are now aware of the conspiracy against the company and are in the process of catching the accused of these false messages on social media.

Shares of IBH traded 5 percent up at Rs 181.55 on BSE around 1045 hours IST.

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First Published on Oct 17, 2019 10:58 am
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