Indiabulls Housing shares surge 9% on dividend, improved outlook. Key details

Shares of Indiabulls Housing Finance Ltd (IBHFL) jumped 9 per cent in Friday's trade after the NBFC said its board has approved raising of funds through issue of NCDs and/or bonds, not in the nature of equity shares, up to Rs 35,000 crore, in one or more tranches, on private placement basis.

Indiabulls Housing said it would raise the amount in a year's time post the receipt of shareholders’ authorisation in the ensuing annual general meeting (AGM).

The stock also gained as the Indiabulls Housing board recommended a final dividend of Rs 1.25 per equity share FY23. Following the development, the stock surged 9.09 per cent to hit a high of Rs 139.15 on BSE. Despite this, the stock is down 11 per cent year-to-date.

Indiabulls Housing said it is emerging from a phase of consolidation over the last few years. As the NBFC gets back on the path of growth, the board has resumed payment of dividends to shareholders, it said, adding that Indiabulls Housing is

well-capitalised with capital adequacy in excess of 23 per cent on standalone basis and 31 per cent on consolidated basis as at the end of March quarter.

"In the past, the company has had a consistent dividend paying track record. As business has now stabilised and the company gets back on the path of growth, subject to regulatory limits, the company aims to resume consistent payment of dividends. It is the company’s goal to deliver good returns to shareholders both on return on equity and on dividends," it said.

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