Indiabulls Housing Finance stock gains 2%, rally continues after debt repayment

Indiabulls Housing Finance Limited shares jumped 2.52 percent to Rs 193.45 at 11.25 am, continuing the rally after the company repaid Rs 1,112.5 crore worth of bonds and Rs 2,323 crore worth of dollar-denominated external commercial borrowings last week.

The housing finance stock has gained almost 23 percent in the last one week since the announcements were made. The stock, however, corrected 2 percent on August 29.

Indiabulls Housing Finance repaid the 10-year, Rs 1,112.5 crore worth of bonds, on August 28 following the repayment of Rs 2,323 crore of external commercial borrowing on August 24. These borrowings were availed from banks like Barclays, MUFG, Sumitomo Mitsui Trust, CTBC, ANZ, Bank of Taiwan, and others.

Indiabulls Housing Finance said that significant high debt repayments were paid off in Q2FY24. Starting now, its incoming loan repayments will be larger than its debt repayments by Rs 1,300 crore to Rs 1,800 crore every quarter. The extra money can be used to grow their assets, the company said in an exchange filing dated August 28.