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    Indiabulls sells stake in Oaknorth, plans more such divestments

    Synopsis

    Vice chairman Gagan Banga said the company has now raised a total of $300 million so far this fiscal with plans to raise a similar amount in the second half of the year netting the company a total of $600 million to $700 millon by March.

    Banga said he expects the company's balance sheet to consolidate at current levels with loan disbursements coming to 100 per cent of last year by December from 75 per cent currently.

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    MUMBAI: Indiabulls Housing Finance has raised Rs 441 crore by selling a portion of its stake in OakNorth Holding Ltd, the parent company of OakNorth Bank to US based Riva Capital Partners, the company said in a stock market notice. This is the second such sale by the company in two months after it raised a similar Rs 440 crore last month in a sale to US based HighSage Ventures in an attempt to spruce up liquidity.

    "With the latest stake sale, the company has raised a total of Rs 2,273 crores as fresh equity in the month of September and October 2020 (Rs 683 crores through QIP and Rs 1590 crores through sale of stake in OakNorth) adding to the regulatory equity capital of the company," Indiabulls said.

    Vice chairman Gagan Banga said the company has now raised a total of $300 million so far this fiscal with plans to raise a similar amount in the second half of the year netting the company a total of $600 million to $700 millon by March.

    "We plan to raise another $100 million to $150 millon by selling the remaining 5 per cent stake we hold in Oaknorth in the next 10 to 15 days. Another $200 million qualified institutional placement is also lined up to add to the $100 million we did earlier this year and we plan to divest some stake in both our mutual fund and alternative investment fund business which will help us raise more money by the end of the financial year," Banga said.

    Indiabulls has cash and cash equivalents of Rs 12,000 crore on a Rs 70,000 crore loan book currently and the company plans to maintain it at 15 per cent or more of balance sheet at all times which comes to about Rs 10,000 crore, Banga said.

    The latest sale proceeds will be accretive to the regulatory net worth and the capital adequacy of the company which currently stands at 31 per cent.

    The company has issued bonds of Rs 2,780 crores in the current fiscal till date and has raised Rs 2,273 crores in fresh equity in the current fiscal till date adding to the regulatory equity capital.

    Banga said he expects the company's balance sheet to consolidate at current levels with loan disbursements coming to 100 per cent of last year by December from 75 per cent currently.

    The company had about 16 per cent of its loan book under moratorium at the end of August.
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    3 Comments on this Story

    Subbaiah Sm76 days ago
    india bulls an attractive buy now and hold for long term
    SM Subbaiah76 days ago
    India bulls at current price very attractive to buy and hold long term
    Suresh Kamath108 days ago
    Banga of Indiabulls seems to be selling stakes to correct the balance sheet of the Company and staying afloat against all such events unfolding sue to Covid Virus and ECONOMY being affected across the GLOBE and hope his efforts would be fruitful and sooner Company Planning during this lax time would raise the LEVELS of Business and do well and Lead in the Competition with their PEERS in the Market
    Read before you invest. Insights on Indiabulls Housing Finance Ltd.. Explore Now
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