Among other group stocks, Indiabulls Ventures (down 10 per cent at Rs 111), Indiabulls Real Estate (down 5 per cent at Rs 43.65) and Indiabulls Integrated Services (down 5 per cent at Rs 123) were locked in their respective lower circuit band and saw no buyers at their counters.
Thus far in financial year 2019-20 (FY20), the market value of Indiabulls group companies have underperformed the market by falling in the range of 53 per cent to 74 per cent. In comparison, the benchmark index remained unchanged during the period.
“Asset-quality risks arising from a sizeable large-ticket commercial real estate portfolio of Rs 17,000 crore as on June 30, 2019 persist, and could impact the Indiabulls Housing Finance’s portfolio performance in a continuing economic downturn scenario,” CRISIL said in a rating rationale dated September 16, 2019.
Given the chunkiness of loans (average ticket size of Rs 150 crore), even a few large accounts experiencing stress could impact asset quality. Nevertheless, the company follows prudent lending practices and ensures sufficient collateral cover. Delinquencies in the commercial lending portfolio will remain a key monitorable, it added.