Indiabulls Housing Finance Ltd. has approved a rights issue of shares through which it plans to raise ₹3,693 crore, it said in an exchange filing on Sunday.
The company will issue 24.62 crore rights shares of face value of ₹2 each at a price of ₹150 per rights equity share. The rights issue price is a 24.6% discount to the stock's closing price last Thursday.
Shareholders will have to pay ₹50 per rights equity share at the time of application and the outstanding subscription money will be called within 12 months from the date of allotment of the shares.
February 1, 2024, has been fixed as the record date to determine the eligibility of shareholders who will receive the rights shares.
A rights issue is where a company raises funds by selling additional shares to existing shareholders of the company. In case an individual does not own shares of the company as of the record date, he/she is not eligible to participate in the rights issue. These rights shares are sold at a discount to the current market price.
Indiabulls Housing Finance's rights issue will open on February 7 and close on February 13, 2024. The on-market renunciation period, where existing shareholders can give up their rights on the floor of the market at a better price, will take place between February 7 and February 8.
Existing shareholders of Indiabulls Housing Finance will be entitled to receive one rights equity share for every two paid-up equity shares they currently own.
The board of Indiabulls Housing Finance had last week approved raising up to ₹5,000 crore or a sum equivalent in US Dollars via various methods.
Shares of Indiabulls Housing Finance ended 5% higher on Thursday, but are down 8% this month. However, the stock is up 70% during the last 12 months.
(Edited by : Amrita)
First Published: Jan 29, 2024 4:51 AM IST
