Indiabulls group firms extend rally; CLSA revises IBHF target

Shares of Indiabulls group extended their rally on Friday after the government filed an affidavit in the Delhi High Court saying there are no irregularities in Indiabulls Housing Finance's books (IBHF) as far as loans given to some of the entities are concerned.

As a result, Indiabulls Housing Finance was trading nearly 11 per cent higher at Rs 370.40, extended its gain to over 40 per cent in three sessions. On the other hand, Indiabulls Ventures and Indiabulls Integrated Services both hit the upper circuit of 5 per cent.

Global brokerage firm CLSA maintained ‘Buy’ rating on Indiabulls Housing Finance and revised target price of Rs 450 (earlier: Rs 350). It said that clarity on court case can lend relief to the company. “MCA affidavit should abate concerns,” said CLSA.


Indiabulls Real Estate was up 4.96 per cent up at Rs 75.10 at around 10 am (IST), while the benchmark BSE Sensex was down 221 points, or 0.54 per cent, at 40909.

“As far as the loans given by IBHF to five companies — DLF, Amricorp, Vatika, ADRG and Chordia reported to be Standard Accounts. Remaining issues/violations reported in the inspection report are under examination and same will be dealt as per law,” said an affidavit filed by the ministry of corporate affairs (MCA).

A writ petition filed on September 6 by a non-government organisation, Citizens Whistle Blower Forum (CWBF), alleged that the Indiabulls group misappropriated thousands of crores of rupees through complex transactions.