Housing Finance stock jumps 8% after strong Q3FY25 business update

Housing Finance company Sammaan Capital, formerly Indiabulls Housing Finance Limited, saw its share price jumped around 8.32 per cent on Thursday's trading session after the company posted a strong Q3 business update for FY25. The stock ended the session at ₹154.58 on January 16.

“The Company has seen strong collections and recovery traction from its legacy portfolio, including from the portfolio already provided for, and from pools sold to asset reconstruction companies [ARCs],” the company told the exchanges.

Key Highlights from Sammaan Capital Q3 business update -

• A premium project in Central Mumbai received occupation certificate [OC] and sold 5 apartments at an average of ₹ 72 Crs each. Company has already received ₹ 175 Crs from this project. This event unlocks ~ ₹1,000 Crs of collections in the next 12 months

• Accelerated collections from a super-luxury project in South Mumbai. The first tranche from ~ ₹ 210 Crs of expected collections by March 2025 has been received. This event also unlocks another ~ ₹ 1,000 Crs of collections in the next 12 months

• Recovery of ₹ 220 Crs following a large PE fund’s purchase of repossessed property in Powai, Mumbai

• Received favourable court judgements unlocking recoveries of ~ ₹ 750 Crs in the NCR region in the next 12 months.

Against a targeted collection of ₹ 3,750 Crs in Q3FY25 from the legacy book, the Company saw collections in excess of ₹ 3,900 Crs. This strong collection traction from the legacy book builds on the ₹ 5,864 Crs of collections in H1FY25.

The company reported a loss of ₹2,761 crore in the second quarter, a significant reversal from the profit of ₹297.98 crore it posted during the same period last year. However, revenue grew by approximately 8.8% year-over-year and 9.7% compared to the previous quarter.

Last month, the company had announced its plans to raise up to ₹2,500 crore by issuing equity shares. The capital will be secured through one or more Qualified Institutional Placements (QIPs), pending the required approvals.

During a board meeting on December 11, 2024, the company’s directors approved the decision in accordance with the Securities and Exchange Board of India’s (SEBI) regulations for capital issuance. The funding aims to strengthen the company’s capital structure and support its ongoing operations.