Indiabulls Commercial Credit Limited NCD

Indiabulls Commercial Credit Limited NCD

NCD Detail

Indiabulls Commercial Credit Limited is set to launch a debt offering, which will be open for subscription from April 3 to April 19, 2023. The company aims to raise Rs 200 crore through the issue, with each NCD priced at Rs 1,000. Investors must apply for a minimum of 10 NCDs per lot. The debt offering has received a CRISIL AA/Stable rating from CRISIL Ratings Limited and an ICRA AA/Stable rating from ICRA Limited.

Established in 2006, Delhi-based Indiabulls Commercial Credit Limited (ICCL) is a non-deposit-taking NBFC and a wholly-owned subsidiary of Indiabulls Housing Finance Limited (IHFL), one of India’s largest housing finance companies. ICCL is also recognized as a financial institution under the SARFAESI Act.

The company primarily focuses on long-term secured mortgage-backed loans, including retail mortgage loans for self-employed individuals, proprietorships, small businesses, and corporate mortgage loans for residential project developers. ICCL serves salaried and self-employed individuals, along with small and medium-sized businesses.

With a presence across Tier I, Tier II, and Tier III cities in India, ICCL has a sales force of over 3,500 employees. The company is now preparing to list its debt securities on the market.

About Company

Indiabulls Commercial Credit Ltd (ICCL) is a non-deposit-accepting NBFC that holds registration with the RBI and operates as a fully-owned subsidiary of Indiabulls Housing Finance Ltd (IHFL), a housing finance company listed on the stock exchange. Additionally, ICCL is designated as a financial institution under the SARFAESI Act.

The company primarily concentrates on providing long-term mortgage loans, which consist of (a) retail mortgage loans to self-employed individuals, sole proprietorships, and small businesses and (b) corporate mortgage loans for developers of residential projects. As of March 31, 2022, ICCL’s loan portfolio was valued at Rs. 10,950.30 crores, with 74% comprising mortgage loans. Its target customer base includes self-employed individuals, salaried, and small and medium-sized enterprises. ICCL also offers mortgage loans to real estate developers in India in the form of lease rental discounting for commercial premises and construction finance. The company has ceased offering personal loans, and the existing portfolio is being wound down.

As of December 31, 2022, ICCL had 36 branches throughout India, with 29 situated within the premises of its parent company. Under a memorandum of understanding with IHFL, ICCL can access certain workstations in these shared locations. ICCL works with 984 direct sales agents and channel partners who refer potential clients, making up 65% of its customer base. The remaining customers are sourced through its internal direct sales team, which includes over 2,200 employees across the network, some of whom are also part of IHFL.

Issue Details

ICCL is launching its 3rd secured, redeemable non-convertible debenture (NCD) offering, each priced at Rs 1,000. The base size of the offering is Rs 100 crores, and the company has a green shoe option to retain an additional Rs 100 crores in oversubscription, bringing the total potential issue size to Rs 200 crores. The overall shelf limit is Rs 1,000 crores, and this Tranche II issue follows the company’s last debt offering in January 2023.

The subscription period for the issue runs from April 3, 2023, to April 19, 2023. Investors must apply for a minimum of 10 NCDs (Rs 10,000) and in multiples of 1 NCD (Rs 1,000) after that. Following allotment, the NCDs will be listed on BSE and NSE. ICCL will spend Rs 17.50 crores on this Tranche I issue. At least 75% of the remaining amount will be used for onward lending, financing, and repaying or prepaying existing borrowings, with up to 25% allocated for general corporate purposes.

Edelweiss Financial Services Ltd, Elara Capital (India) Pvt Ltd, and Trust Investment Advisors Pvt Ltd serve as joint lead managers for the issue, while KFin Technologies Ltd is the registrar, and Beacon Trusteeship Ltd is the Debenture Trustee.

The NCD offers tenors of 24, 36, and 60 months, with annual, monthly, or cumulative interest payment options depending on the chosen series. Coupon rates range from 9.20% to 10.50%. The allocation is set at 30% for institutional investors, 10% for non-institutional investors, 30% for HNIs, and 30% for retail investors.

Financial Performance (In Crore)

Important Dates

NCD Rating

This debt offering has been assigned a CRISIL/AA Stable rating by CRISIL Ratings Ltd. and an ICRA/AA Stable rating by ICRA Ltd. These ratings indicate a high level of safety concerning the timely fulfilment of financial obligations and low credit risk. It’s important to note that these ratings are subject to change, suspension, or withdrawal at any time by the respective rating agencies and should be assessed independently of any other ratings.

Company Promoters

The promoters of the company Indiabulls Housing Finance Limited.

The objective of the Issue

The objective of the issue is to raise funds that will be primarily used for onward lending, financing, and repaying the interest and principal of the company’s existing borrowings. Additionally, a portion of the funds will be allocated for general corporate purposes.

How to Apply

Wait for the NCD to open for subscription, then click on this link to apply for the Indiabulls Housing Finance NCD with Bigul https://ipo.bonanzaonline.com/.

How to Check Allotment Status

The registrar for Indiabulls Housing Finance NCD is KFin Technologies Limited. To check your allotment status, please click on this link.

FAQs

1. When does the Indiabulls Commercial Credit NCD April 2023 public offering take place?

The public offering for Indiabulls Commercial Credit NCD April 2023 opens on April 3, 2023, and concludes on April 19, 2023.

2. What is the timeline for the Indiabulls Commercial Credit NCD April 2023?

The important dates for the Indiabulls Commercial Credit Limited NCD IPO are as follows:

• Opening date: April 3, 2023
• Closing date: April 19, 2023

3. What is the pricing of the Indiabulls Commercial Credit NCD April 2023 issue?

Each NCD in the Indiabulls Commercial Credit NCD April 2023 issue is priced at Rs 1,000.

4. What is the face value for the Indiabulls Commercial Credit NCD April 2023?

The face value of each NCD in the issue is Rs 1,000.

5. How often is interest paid for the Indiabulls Commercial Credit NCD April 2023?

Interest payments for the Indiabulls Commercial Credit NCD April 2023 are made annually, monthly, or cumulative.

6. What is the minimum application size for the Indiabulls Commercial Credit NCD April 2023 public offering?

The minimum application size is 10 NCDs, with increments of 1 NCD after that.

7. When does the Indiabulls Commercial Credit NCD April 2023 subscription window close?

The subscription window for Indiabulls Commercial Credit NCD April 2023 remains open on business days from 10:00 am to 5:00 pm until April 19, 2023, but may close earlier if fully subscribed.

8. What are the maturity periods for the Indiabulls Commercial Credit NCD April 2023 bonds?

The NCDs have fixed maturity periods of 24, 36, and 60 months.

9. What is the base issue size of the Indiabulls Commercial Credit NCD April 2023?

The Indiabulls Commercial Credit NCD April 2023 includes a base issue and a shelf issue:

Base Issue Size: Rs 200.00 Crores

Shelf Issue Size: Rs 1,000.00 Crores Note that the shelf issue provides the option to retain oversubscription up to the shelf issue size beyond the base issue.

10. Who is ineligible to invest in the Indiabulls Commercial Credit Limited offer?

The following individuals and entities are not eligible to invest:

• Minors without a guardian’s name
• Foreign nationals
• Persons residing outside India
• Foreign Portfolio Investors
• Foreign Venture Capital Investors
• Qualified Foreign Investors
• Overseas Corporate Bodies
• Persons unable to enter contracts under applicable legal/regulatory requirements