Page 17 - Banking Finance September 2019

HOUSING

HOUSING

NEWS
NEWS
NEWS
NEWS
NEWS

Indiabulls Housing Fi- Marque investors likely to sell 6.7% in LIC Housing Fi-

nance stock downs for nance
fifth straight session Some large investors may sell about 6.7% shares of LIC Housing Finance, ac-
cording to a term sheet. The price range of
Indiabulls Housing Finance Ltd regis- the transaction can be between Rs 425.15
ters 3.82% – 449.50 per share. About 3.3 crore share
decline at are offered through accelerated book build
Rs 501.5. In route, according to the term sheet. The
the last one names of the sellers are not ascertained
year, the immediately. Fidelity Investment Trust held
stock 3.41% in the housing finance company as on June 30, 2019 while Bank of Mus-
tumbled 60.63% as compared to a cat India Fund and Government Pension Fund Global held 2.28% and 1.83%,
5.27% slide in NIFTY and a 6.67% respectively.
spurt in the Nifty Financial Services
index.
Sebi relaxes buyback norms for firms with housing fi-
Indiabulls Housing Finance Ltd shares
have fallen for a fifth straight session. nance, NBFC units
The benchmark NIFTY was down In a recent move, Sebi has announced relaxation of its norms for buyback of
around 0.4%, quoting at 10972.65. shares by listed companies, especially those hav-
The Sensex was at 37162.2, down ing subsidiaries in housing finance and NBFC sec-
0.44%. tors.
Indiabulls Housing Finance Ltd has The repurchase of shares by listed companies is
eased around 23.54% in last one governed by the Buyback Regulations of the Se-
month. Meanwhile, Nifty Financial curities and Exchange Board of India (Sebi) as
Services index of which Indiabulls well as the Companies Act.
Housing Finance Ltd is a constituent,
has eased around 3.84% in last one The companies need to maintain that the buyback offer cannot exceed 25% of
month, and recently quoted at the aggregate paid-up capital and free reserves of the company, but sharehold-
12450.4, down 0.39%. The volume in ers' approval is required through a special resolution if the size exceeds 10%.
the stock stood at 110.91 lakh In addition, a buyback is permitted only if the ratio of the aggregate of secured
shares, compared to the daily aver- and unsecured debts owned by the company after the buyback is not more than
age of 223.28 lakh shares in last one twice the paid-up capital and free reserves, unless a higher debt-to-equity ratio
month. is specified under the Companies Act.

BANKING FINANCE | SEPTEMBER | 2019 | 17