Indiabulls Housing – A compounder from here?

My take as below:

1. Dont know impact on Book Value but I feel that conversion would be best for company as it will free up the capital for growth. Stock already at significant discount to BV so equity dilution would make base for higher levels with additional capital.

2. Debt raising is based on their AA rating and rates can only improve when their AUM increases with less NPA giving more stable future earnings. I feel Gagan and team has brought the company from difficult situation and things are only bound to improve from hereon. Change in perception by market is evident and if overall sentiment remains stable, IBH should cover its gap from BV.