Indiabulls Housing Finance Ltd. launched its rights issue on Wednesday to raise Rs 3,693.4 crore.
The record date for the rights issue was Feb. 1, which means only investors holding Indiabulls Housing Finance shares on this date will be eligible for the offer.
The issue will continue from Feb. 7 to Feb. 13. Eligible shareholders can exercise market renunciation until Feb. 8.
The company will issue over 24.62 crore shares on a rights basis. Eligible shareholders will get one share for every two shares of the company they hold.
The issue price has been fixed at Rs 150 per share, which is a discount of 19.34% to the Tuesday closing price.
Investors will have to pay Rs 50 per rights share. The balance of Rs 100 will have to be paid on one or more subsequent calls, as determined by the company's board or its Securities Issuance and Investment Committee.
Of the Rs 3,574 crore net proceeds, after deducting issue-related expenses, Indiabulls Housing Finance will use Rs 2,734.1 crore to augment its capital base. The company will employ Rs 850.5 crore during the ongoing fiscal. The rest will be used for general corporate purposes.
Indiabulls Housing Finance shares were up 1.77% at Rs 189.5 apiece, compared to a 0.33% advance in the benchmark NSE Nifty 50 as of 9:58 a.m.
In January, the company approved raising Rs 5,000 crore through the issue of equity shares or any other convertible securities by way of a private placement, including a preferential offer, rights issue or other methods.
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