BackIndiabulls Housing’s $1 bn issue gets shareholders’ nod
Indiabulls Housing will raise the amount through a qualified institutional placement mode to qualified institutional buyers
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New Delhi: Indiabulls Housing Finance Co. Ltd (IHFCL) said on Saturday its proposed plan to raise up to $1 billion by way of equity or convertible securities has been approved by shareholders. The company on Saturday filed the minutes of proceedings of its annual general meeting of members held on 7 September on the BSE.
“...to create, offer, issue and allot, in one or more tranches, whether rupee denominated or denominated in foreign currency, in the course of domestic/international offerings, for a value of up to rupees equivalent to $1 billion," it said in the filing.
The company will raise the amount through a qualified institutional placement (QIP) mode to qualified institutional buyers (QIBs). IHFCL said the issuance of securities by QIP to be issued by the board of the company will be at a discount of up to 5%.
“The relevant date for determining the price of securities, shall be the date of the meeting in which the Board decides to open the proposed issue of the securities, including non-convertible debentures (NCDs) and warrants by way of QIP, subsequent to the receipt of shareholders’ approval," it added.
The company plans to raise the amount to meet its capital adequacy and funding requirements. Besides, the proceeds of the funds will also be used to meet company’s general corporate purposes, investment of funds in interest or dividend bearing instruments and securities, including deposits with banks and investment in mutual funds.
Further, the company board also approved to enhance the borrowing limit up to ₹ 1 trillion. “For borrowing from time to time, any sum or sums of monies may exceed the aggregate of the paid-up capital of the company and its free reserves...provided that the total outstanding amount so borrowed shall not at any time exceed the limit of ₹ 100,000 crore," it said. PTI
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