This Vanguard Fund Stock is also part of the S&P BSE 500 and it has announced receipt of credit rating upgrade. The company has a market cap of Rs. 8,500 crore and is 15% away from its 52 week high, trading at Rs. 176.80 versus Rs. 173.00 at closing on Thursday.
The stock is seeing volumes that are over 0.3x the monthly average and has high institutional holding with 19% held by FIIs and 16% held by DIIs & 0% promoter holding.
In a filing dated 10th October 2023, Indiabulls Housing Finance Ltd (“Indiabulls”) stated that it received from the rating agency CARE Ratings on October 9, 2023. The rating committee of CARE Ratings has revised the long-term rating of Indiabulls Housing Finance Limited to “CARE AA-” with Stable outlook. The rating for Perpetual Debt has been revised to “CARE A+“ with Stable outlook. The short-term rating has been reaffirmed at “CARE A1+”.
The Company strongly disagreed with the adverse rating action taken by CARE Ratings. The company added saying that the main pillars of its strategy of building prospective business under an asset light model, de-risking and running down of on-balance sheet borrowings, have been cast as negatives with a preference indicated for on-balance sheet lending. Further, Indiabulls stated the improved capital position, vastly reduced debt repayment burden, low gearing, very high liquidity coverage ratio, stable asset quality, and positive ALM going ahead – factors that are of most relevance to debt investors, the primary constituency of ratings – do not seem to have been taken into consideration in the rating decision.
Additionally, in a filing dated 9th October 2023, the Company offered to buy back bonds maturing up to March 2024. The Asset Liability Management Committee [ALCO] of the Company, considering the strong liquidity position, has decided to extend this offer to debenture holder(s) holding bonds across tenures, which are rated by CARE Ratings and not rated by CRISIL or ICRA. Just last month, CRISIL reaffirmed the Company’s rating at “CRISIL AA/Stable” on September 21, 2023, and ICRA revalidated the Company’s rating at “ICRA AA/Stable” on September 26, 2023.
Written by Sandeep R
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