In a regulatory filing made after market hours on Tuesday, the company said that it had further sold a portion of its stake in OakNorth Holding (the wholly-owning parent company of OakNorth Bank) to TEMF (a fund managed by Toscafund Asset Management) for approximately Rs 630 crore. The sale proceeds will be accretive to the regulatory net worth and the capital-to-risk weighted assets ratio (CRAR) of Indiabulls Housing Finance.
Toscafund Asset Management LLP is a multi-asset management fund with approximately $ 4 billion of assets under management. It has an investor network spanning across global institutional investors, private family offices, and investment intermediaries
"With the latest stake sale, the company has raised a total of Rs 1,832 crore as fresh equity in the month of September 2020 (Rs 683 crore through QIP and Rs 1,149 crore through sale of stake in OakNorth) adding to the regulatory equity capital of the company," the housing financier said.
Indiabulls Housing in its category of AA/AA+ rated housing finance companies (HFCs)/non-banking financial companies (NBFCs) is at the top position for both raising bonds and fresh equity in the current fiscal. The company has issued bonds of Rs 2,780 crore in the current fiscal till date, it said.
Further, the company has launched a buyback of all its bonds maturing in next 12 months.
Shares of Indiabulls Housing Finance jumped as much as 5.22% at the day's high of Rs 160 early today.
Indiabulls Housing Finance's primary business activities are to carry on business of investing and finance related activities (investing in various subsidiaries, financing of loans and credit activities) and fee income, which mainly consists of financial service related fee income from services, selling of insurance products as a licensed corporate agent, and other related ancillary services.
The housing finance company's consolidated net profit tumbled 65.5% to Rs 272.84 crore on 33.7% drop in total income to Rs 2,578.23 crore in Q1 June 2020 over Q1 June 2019.