06-Dec-2023
2 mins read
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Indiabulls Housing Finance Limited has announced a public issue of NCDs to raise capital from the debt market. The NCD subscription starts on December 7, 2023, and closes on December 20, 2023. It will have a base issue size of Rs 200 crore.
About Indiabulls Housing Finance Limited
Established in 2005, Indiabulls Housing Finance Limited (IHFL) specializes in delivering mortgage lending services and operates as a non-deposit-taking housing finance company under NHB registration.
IHFL is the flagship company of the Indiabulls Group and a leading housing finance provider in India. The company extends housing loans and loans against property to various types of borrowers, including salaried employees, self-employed individuals, MSMEs (micro, small, and medium-sized enterprises), and corporates. It also provides mortgage loans to real estate developers in India in the form of lease rental discounting for commercial premises and finance for the construction of residential premises.
As of September 30, 2023, the company maintains a network of 218 branches strategically positioned across India. Additionally, it boasts a dedicated direct sales team comprised of 1745 employees on a consolidated basis. Notably, housing and non-housing loans accounted for 57% and 43% of the company’s portfolio, respectively, as of March 31, 2023.
Indiabulls Housing Finance Limited holds commendable long-term credit ratings, including “AA; Outlook Stable” from CRISIL and ICRA, “AA; Outlook Negative” from CARE Ratings, and “AA+; Outlook Stable” from Brickwork Ratings for non-convertible debentures and subordinated debt programs.
Financial Performance of Indiabulls Housing Finance Limited
| Period Ended | 31-Mar-23 | 31-Mar-22 | 31-Mar-21 |
| Assets | 74,945.24 | 81,973.32 | 93,239.03 |
| Revenue | 8,725.79 | 8,993.90 | 10,030.12 |
| Profit After Tax | 1,127.68 | 1,177.74 | 1,201.59 |
| Reserves and Surplus | 18,353.75 | 17,678.34 | 17,255.64 |
Indiabulls Housing Finance Limited Tranche IV NCD Details
| Issue Open | December 7, 2023 – December 20, 2023 |
| Security Name | Indiabulls Housing Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 200.00 Crores |
| Issue Size (Shelf) | Rs 2,000.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | “CRISIL AA/Stable” by CRISIL Ratings Limited and “[ICRA]AA (Stable)” by ICRA Limited |
| Tenor | 24, 36, 60, 84 and 120 Months |
| Series | Series I to XII |
| Payment Frequency | Monthly, Annual and Cumulative |
NCD Allocation Ratio of Indiabulls Housing Finance Limited Tranche IV NCD
| Category | NCD’s Allocated |
| Institutional | 30% |
| Non-Institutional | 10% |
| HNI | 30% |
| Retail | 30% |
Indiabulls Housing Finance Limited Tranche IV NCD Coupon Rates
| Series | Frequency of Interest Payment | Nature | Tenor | Coupon (% per Annum) | Effective Yield (% per Annum) | Amount on Maturity (In Rs.) |
| 1 | Annual | Secured | 24 Months | 9.65% | 9.64% | Rs 1,000.00 |
| 2 | Monthly | Secured | 24 Months | 9.25% | 9.64% | Rs 1,000.00 |
| 3 | Cumulative | Secured | 24 Months | NA | 9.65% | Rs 1,202.65 |
| 4 | Annual | Secured | 36 Months | 9.90% | 9.89% | Rs 1,000.00 |
| 5 | Monthly | Secured | 36 Months | 9.48% | 9.89% | Rs 1,000.00 |
| 6 | Cumulative | Secured | 36 Months | NA | 9.90% | Rs 1,327.75 |
| 7 | Annual | Secured | 60 Months | 10.15% | 10.14% | Rs 1,000.00 |
| 8 | Monthly | Secured | 60 Months | 9.71% | 10.14% | Rs 1,000.00 |
| 9 | Annual | Secured | 84 Months | 10.50% | 10.49% | Rs 1,000.00 |
| 10 | Monthly | Secured | 84 Months | 10.03% | 10.49% | Rs 1,000.00 |
| 11 | Annual | Secured | 120 Months | 10.75% | 10.74% | Rs 1,000.00 |
| 12 | Monthly | Secured | 120 Months | 10.25% | 10.74% | Rs 1,000.00 |
NCD Rating of Indiabulls Housing Finance Limited Tranche IV NCD
The NCDs proposed to be issued under this issue have been rated “CRISIL AA/Stable” by CRISIL Ratings Limited and “[ICRA]AA (Stable)” by ICRA Limited.
Company Promoters of Indiabulls Housing Finance Limited
The company is managed by professionals and does not have any identifiable promoters.
The Objective of the Indiabulls Housing Finance Limited Tranche IV NCD
The company’s plans for utilizing the net proceeds from the issue are as follows:
- To facilitate onward lending and financing, as well as for repaying the interest and principal amounts on the company’s existing borrowings.
- For general corporate purposes.
Indiabulls Housing Finance Limited Tranche IV NCD Lead Manager(s)
The lead manager of the NCD is Nuvama Wealth Management Limited, Elara Capital (India) Private Limited and Trust Investment Advisors Private Limited.
How to Apply for Indiabulls Housing Finance Limited Tranche IV NCD
Wait for the NCD to open for subscription, and then click on this link to apply for the Indiabulls Housing Finance Limited NCD with Bigul: https://bigul.co/open-account.
How to Check the Allotment Status of Indiabulls Housing Finance Limited Tranche IV NCD
The registrar for Indiabulls Housing Finance Limited NCD is Kfin Technologies Limited. To check your allotment status, please click on this link https://www.kfintech.com/
FAQs
- What is Indiabulls Housing Finance Limited NCD?
The NCD (Non-Convertible Debentures) is a debt instrument offered by Indiabulls Housing Finance Limited to the public for subscription. It is a secured, redeemable debenture that carries a fixed interest rate.
- What is the primary objective of this NCD issue?
The company will use the net proceeds to support lending and financing activities, repay existing borrowings and for general corporate purposes.
- What is the issue size and price of the NCD?
The base issue size is Rs 200 crore, with a green shoe option potentially taking the total to Rs 2000 crore. Each NCD is priced at Rs 1,000.
- How long is the NCD open for subscription?
The NCD subscription starts on December 7, 2023, and closes on December 20, 2023.
- How has the NCD been rated?
The NCD has received a “CRISIL AA/Stable” by CRISIL Ratings Limited and “[ICRA]AA (Stable)” by ICRA Limited.
- Who are the promoters behind the company?
The company is managed by professionals and does not have any identifiable promoters.
- Where will the NCD be listed for trading?
Post-issue, the NCDs will be available for trading on BSE as well as on NSE in a dematerialized format.
- Who are the lead managers for this NCD issue?
The NCD is being led by Nuvama Wealth Management Limited, Elara Capital (India) Private Limited and Trust Investment Advisors Private Limited.
- How can I apply for the Indiabulls Housing Finance Limited NCD?
Once the NCD opens for subscription, you can apply through this link: Indiabulls Housing Finance Limited NCD with Bigul.
- How do I check my allotment status?
The registrar for this NCD is Kfin Technologies Limited. You can check your allotment status by visiting this link.
- How many series of NCDs are available, and what are their respective tenures?
There are 12 series of NCDs available with varying tenures of 24, 36, 60, 84 and 120 Months
- Who is overseeing the allotment process?
The allocation of NCDs is being overseen by Idbi Trusteeship Services Limited.
- What are the payout options for these NCDs?
Investors have the flexibility to choose between monthly, annual and cumulative interest payout options, depending on the series.
- What happens in the case of oversubscription?
In situations of oversubscription, Indiabulls will allocate the debentures to applicants on a proportional basis.