Indiabulls dilutes stake in UK arm, raises Rs 441 crore

MUMBAI: After raising Rs 2,200 crore through a combination of institutional offers and stake sales in its business arms in the September quarter, Indiabulls Housing Finance on Friday said it raised another Rs 441 crore through part-sale of its stake in the UK-based bank OakNorth. It is also planning another institutional placement in the current quarter to further bolster its reserves, sources said.
Indiabulls Housing has further sold a portion of its stake in OakNorth Holding, the wholly owning parent company of OakNorth Bank to Riva Capital Partners V of the US for approximately Rs 441 crore, the company said in a regulatory disclosure. “The sale proceeds will be accretive to the regulatory net worth” and the capital adequacy ratio, it said.
With the latest stake sale, Indiabulls Housing has raised a total of Rs 2,273 crore as fresh equity during September and October this year, adding to the regulatory equity capital of the company. “Indiabulls Housing in its category of AA/AA+ rated housing finance/NBFCs is at the top position for both raising bonds and fresh equity in the current fiscal,” it said. During FY21, it has already raised Rs 2,780 crore through bonds and Rs 2,273 crore through equity issuance.
Of late, banks and NBFCs have been on a capital-raising spree, anticipating higher levels of defaults once the economy opens up and the government-led loan moratorium ends, analysts have said. By raising funds ahead of an anticipated bad loan deluge, lenders would be in a position to carry on with their businesses smoothly, they said.