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Indiabulls Ventures planning QIP or rights issue to raise up to Rs3,000 crore

LiveMint logoLiveMint 21-09-2017 Sneh Susmit

Mumbai: The board of Indiabulls Ventures Ltd, the financial services arm of the Indiabulls Group, on Thursday approved raising as much as Rs3,000 crore either through a qualified institutional placement (QIP) or rights issue of shares, the company said in a filing with stock exchanges.

Indiabulls Ventures provides securities, commodities and currency broking services. It also plans to enter the asset reconstruction business and retail and SME (small and medium enterprise) lending.

“The funds are being raised keeping in view the growing business requirements, in line with the proposed expansion plans into lending and asset reconstruction businesses,” the filing said.

On Thursday, shares of Indiabulls Ventures lost 5.35% to close at Rs252.9 on BSE, while the exchange’s benchmark Sensex lost 0.09% to close at 32,370.04 points.

A QIP fund-raise will mean Indiabulls Ventures will join a long list of banking and financial services companies to tap the capital markets using that route.

This year, QIP fund-raising, which breached the all-time high of Rs34,675 crore seen in 2009, has been dominated by large issuances from the banking and financial services sector.

Till August this year, 18 companies have raised Rs34,881.52 crore through QIPs, according to data from primary market tracker Prime Database.

In early September, Bajaj Finance Ltd launched a Rs4,500 crore QIP, Mint reported. Bajaj Finance is a non-banking financial company engaged in consumer finance, SME finance, commercial lending and wealth management.

On Monday, Mint reported that Kerala based-Catholic Syrian Bank Ltd is looking to raise around Rs400 crore by selling shares to financial institutions.

Earlier this year, State Bank of India (SBI) and Kotak Mahindra Bank Ltd raised record sums through QIPs from public and private sector companies, respectively. In June, SBI raised Rs15,000 crore through a QIP, while in May, Kotak Mahindra Bank raised Rs5,803 crore through an institutional share sale.

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