Indiabulls Housing Finance has raised about Rs 630 Crores by selling a part of its stake in OakNorth Holding, the wholly owned parent company of OakNorth Bank.
In a recent stake sale, the company has raised a total of rupees 1, 832 crore as fresh equity in September 2020 adding to the regulatory equity capital of the company. The company raises Rs 683 crore through Qualified Institutional Placement and Rs 1,149 crore through the sale of OakNorth. Qualified Institutional Placement is used as a fundraising tool for the listed companies. QIP is introduced by the Securities and Exchange Board of India which enable the listed company to raise fund through the issue of securities to Qualified Institutional Buyers. The company said that "The sale proceeds will be attractive to the regulatory network and the CRAP (Capital to Risk-weighted Assets Ratio) of the company"
"Indiabulls housing in its category of AA / AA+ rated HFCs/ NFC is at the top position for both raising bond and fresh equity in the current fiscal year the Company has issued a bond of rupees 2,780 crores in the current fiscal year till date and has raised rupees 1,832 crores in fresh equity in the current fiscal year till date adding to the regulatory equity capital of the company".
Moreover, the company has also launched a buyback of all its bonds maturing in the next 1 year. Buyback of shares and securities is governed by Section 68 of Companies Act, 2013. Buyback is a process by which the company buyback its own shares from the existing Shareholders usually.