Indiabulls Housing rallies for 3rd straight session on timely payment of interest/principal

Shares of Indiabulls Housing Finance gained for the third consecutive session on December 31 following timely payment of interest/principal related to NCDs. The stock gained more than 5 percent in three consecutive days and climbed over 2 percent intraday January 1. It was quoting at Rs 310.70, up Rs 3.95, or 1.29 percent on the BSE at 1047 hours IST.

The housing finance company on December 27 and December 30 said it made timely payment of interest/principal (as the case may be) in respect of the secured redeemable non-convertible debentures (NCDs) issued by itself on private placement basis. Towards the end of last month and earlier this month, the company redeemed (bought back) secured, redeemable, non-convertible debentures of face value Rs 10 lakh each.

“We have taken an initiative to buy back some of the securities maturing in 2021. We will be buying back bonds worth Rs 1,000-2,000 crore between now to January while we will be rolling back wholesale book between now to March 2020 by Rs 7,000 crore or $1 billion,” Gagan Banga, Vice Chairman and Managing Director at Indiabulls Housing Finance told CNBC-TV18.

He feels the worst for the housing finance sector is behind. “Operating profit continues to remain around Rs 800 crore. Gross NPA will be between 1.5-2 percent,” said Gagan Banga.