Indiabulls Housing prepays Masala Bonds, plans buyback; stock down 7%

Shares of Indiabulls Housing Finance fell 7 percent in the early trade on October 15 despite the company mulling buyback of shares.

The company at its meeting held on October 14 considered the option of buyback of shares.

The company said the board will take a final decision on the buyback after getting confirmation from market regulator Securities and Exchange Board of India (SEBI).

“Based on legal advice received on the subject of buyback, the board thought it prudent to first confirm with SEBI on the applicability of the debt-equity ratio of 6:1 as currently prescribed for subsidiary NBFC/HFC in the Govt Gazette dated 19th September 2019 to be also applicable if the NBFC/HFC is not a subsidiary but the parent-listed company itself as is the case with Indiabulls Housing Finance,” the company said in the release.

The rating committee of ICRA has reaffirmed the long-term rating of the company at ICRA AA+ and short-term rating has been reaffirmed at ICRA A1+.

The company has made the repayment of the entire maturity proceeds from the Masala Bonds worth Rs 1,330 crore to Axis Trustee.

At 0916 hrs, Indiabulls Housing Finance was quoting at Rs 185.20, down Rs 12.70, or 6.42 percent on the BSE.

Source : http://tiny.cc/fc4jez

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