Indiabulls Housing Finance recovers from 5% fall after ED raids its offices in PMLA case

Indiabulls Housing Finance share price: Indiabulls Housing Finance shares slipped nearly five per cent on BSE on Thursday (February 29, 2024) after the Enforcement Directorate (ED) raided the company's Delhi offices. The stock, however, gathered momentum later in the day and recovered to close higher by over 2 per cent.  

A day after Zee Business reported that the ED was taking action against Indiabulls Housing Finance, the stock slid by nearly five per cent in morning deals, but staged a superb recovery later in the day to end the trading session higher by 2.41 per cent, or Rs 4.50, at Rs 191.15 on Thursday. 

The stock that closed the trading session at Rs 186.65 on Wednesday started the session on Thursday at Rs 180.50 to go down to the day's low of 177.70, a 4.79 per cent fall. The stock's day's high is Rs 192.00.

Why is ED raiding Indiabulls Housing Finance offices?

The ED is searching Indiabulls Housing Finance offices in a Prevention of Money Laundering Act case. The ED has also raided M3M Realty.

Indiabulls Housing Finance Rights Issue

Indiabulls Housing Finance on Wednesday approved a public issue worth Rs 100 crore. 

In a statement to bourses on Wednesday, the company said, "The Committee inter alia considered and approved the public issue by the Company of secured, redeemable, non-convertible debentures of face value of Rs 1,000 each (“NCDs”) for an amount up to Rs 100 crores (“Base Issue Size”) with an option to retain oversubscription up to Rs 100 crores, aggregating up to Rs 200 crores (“Tranche V Issue Limit”)(“ Tranche V Issue”), which is within the shelf limit of Rs 2,000 crores."

The tenor of the rights issue is 24 months, 36 months, 60 months, 84 months, and 120 months, said Indiabulls Housing Finance.