MUMBAI: Indiabulls Housing Finance will convene an extraordinary general meeting (EGM) on July 29 to seek shareholders’ approval to raise up to $300 million by issuing securities through QIP or foreign curency convertible bonds (FCCB).
The company said it’s going for the fundraising plan in order to augment the long-term resources and to maintain sufficient liquidity for meeting funding requirements of its business activities.
The EGM will be convened through video-conferencing or other audio visual means on July 29 to seek shareholders’ approval for issuance of securities of the company through qualified institutional placement (QIP) and/or foreign currency convertible bonds (FCCBs) or any other permissible modes, Indiabulls Housing Finance said in a regulatory filing.
The call for the EGM is pursuant to the board authorisation on at its meeting on held on July 3 to seek shareholders’ approval for raising funds.
“Infusion of fresh capital under the current circumstances will demonstrate to the key industry participants such as lenders, especially debt market investors and rating agencies the company’s ability to tap equity markets periodically to fund growth,” Indiabulls Housing Finance said in its statement.
It said the issue of the securities will serve the purpose of driving growth, and will serve as confidence capital forming a significant economic moat for the company.
The company said that the pricing of the QIP equity shares would be fixed by the board, depending on market conditions and in accordance with applicable laws.