Indiabulls Housing Gains 7 Percent after Positive Crisil Ratings
Indiabulls Housing stock gained nearly 7 percent after Crisil Ratings reaffirmed long term rating for Indiabulls Housing to CRISIL AA+. Indiabulls Housing has been facing selling pressure after issues surfaced with housing finance companies and IL&FS debacle. RBI declined approval for Indiabulls Housing merger with Lakshmi Vilas Bank and this led to continued decline in stock valuations.
However, Indiabulls Housing has a strong portfolio and investors sold in panic. The valuations after the recent decline look promising and the stock has witnessed a jump in today’s trading session. Indiabulls Housing has maintained strong liquidity at 20% of total assets of the company. The company also has total liquidity of Rs 18,500 crore which is enough to cover its debt repayment for next 12 months.
In a statement released to stock exchanges, Indiabulls Housing said, “The rating committee of CRISIL has reaffirmed the long-term rating of Indiabulls Housing Finance at “CRISIL AA+”. The short-term rating has been reaffirmed at “CRISIL A1+”. The watch resolution of negative outlook follows the announcement of RBI not approving the merger of the company with Lakshmi Vilas Bank.”
Indiabulls Housing has also blamed some people for spreading rumors about the financial health of the company on social media. In a statement, Indiabulls Housing said, “The Company has already provided and is also constantly assisting the Police by providing details and names of various Twitter handles/ Whatsapp Groups and persons intentionally involved in mass forwarding of the messages with blatantly false information.”
Investors should always conduct due diligence before making decision about buying or selling stocks. Rumors in the market always lead to bad decisions and investors should be careful.