The rights issue of Indiabulls Housing Finance will open today through which it plans to raise ₹3,693 crore.
Indiabulls Housing Finance plans to issue 24.62 crore rights shares of face value of ₹2 each at a price of ₹150 per rights equity share. The record date for the rights issue was February 1. This means that those who purchased shares of Indiabulls Housing Finance after February 1 will not be eligible to participate in the rights issue.
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.
Based on Tuesday's closing price, the rights issue price is at a discount of 19.3%.
Existing shareholders of Indiabulls Housing Finance, who had shares of the company as on the record date, will be entitled to receive one rights equity share for every two paid-up equity shares they currently own.
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.
The rights issue will close on February 14.
The board of Indiabulls Housing Finance had last month approved raising up to ₹5,000 crore or a sum equivalent in US Dollars via various methods.
Shares of Indiabulls Housing Finance ended 2.2% higher on Tuesday at ₹186.8.
