Indiabulls Housing extends rally on buying by FPIs, zooms 40% in two days

Shares of Indiabulls Housing Finance rallied 13 per cent to Rs 377 in early morning deals on Friday on the National Stock Exchange (NSE) after foreign portfolio investors (FPIs) bought nearly one percentage points stake in the company through open market. The stock of the housing finance company had zoomed 25 per cent on Thursday.

On November 28, Government Pension Fund Global had bought 3.1 million equity shares, representing 0.73 per cent stake, in Indiabulls Housing Finance for Rs 95 crore on the NSE, bulk deal data shows. The FPIs purchased these shares at the price of Rs 305.60 per share, data shows. The name of the sellers were not ascertained immediately.

With today’s rally, the stock price of Indiabulls Housing Finance has appreciated by 127 per cent from its low of Rs 166 touched on October 17, 2019.

The counter has seen huge trading volumes, with a combined 36 million equity shares changing hands on the NSE and BSE till 09:42 am.

Meanwhile, the Ministry of Corporate Affairs (MCA) has informed the Delhi High Court that it is examining the inspection reports of Indiabulls Housing Finance (IBHFL) and Indiabulls Venture and has not found irregularity in loans given to the five companies as alleged by a Public Interest Litigation (PIL).

In a regulatory filing, IBHFL said, the MCA, Government of India, filed an affidavit in the Court stating “As far as the loans given by IBHFL to five companies, viz, DLF, Amricorp, Vatika, ADAG and Chordia which are the subject matter of the instant Writ Petition, the report states that loans given to Amricorp, ADAG and DLF have been repaid and loans given to other two entities viz Vatika and Chordia reported to be “Standard Accounts”.

The petitioners had alleged in the PIL that the loans were given to shell companies. The company had refuted the allegations in the court and had submitted documentary proofs and bank statements with respect to these loans. Subsequently, the Hon’ble Court had issued a Perjury Notice to the petitioners, the company said.

The facts stated in Government affidavit, filed today, provides a true and clear picture about the allegations made in the PIL, it said.