06-Nov-2023
2 mins read
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Indiabulls Housing Finance NCD
NCD Detail
Indiabulls Housing Finance is launching a debt offering that will be open for subscription from March 3 to March 17, 2023. The company aims to raise Rs 100 crore through the issue, with each NCD priced at Rs 1,000. Investors are required to apply for a minimum of 1 NCD per lot. The debt offering has been rated CRISIL AA/Stable by CRISIL Ratings Limited and ICRA AA/Stable by ICRA Limited.
Established in 2005, Indiabulls Housing Finance Limited specializes in providing mortgage lending services and is among India’s top housing finance companies. As the flagship company of the Indiabulls Group, it offers various services, such as home loans, home renovation loans, rural home loans, and home extension loans.
As of September 30, 2022, the company operates a network of 164 branches across India, ensuring a nationwide presence and enhanced customer interaction. The company employs a direct sales team of 2,200 people who are stationed across the network. Indiabulls Housing Finance Limited holds long-term credit ratings of “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.
About Company
Indiabulls Housing Finance Ltd. (IBHFL) ranks among India’s largest housing finance companies by assets under management (AUM). The company primarily focuses on long-term secured mortgage-backed loans, with most of its loan book comprising secured loans. It offers housing loans and loans against property to self-employed individuals and salaried, as well as micro, small, and medium-sized enterprises (MSMEs).
In addition, IBHFL provides mortgage loans to real estate developers for lease rental discounting of commercial properties and construction finance for residential properties. Most of its AUM comprises housing loans, including those in the affordable housing segment as defined by the RBI. The company has adopted an asset-light business model, emphasizing co-lending loans with banks, financial institutions, and credit funds while increasing the sell-down of its loan portfolio.
As of March 31, 2022, housing loans constituted 62% of the Loan Book, with non-housing loans making up the remaining 38%. On a consolidated basis, the Loan Book was Rs 61,589.26 crores as of March 31, 2022, and Rs 53,922.14 crores as of December 31, 2022.
By December 31, 2022, IBHFL operated a network of 203 branches across India, enabling a nationwide presence and improved customer interaction and service. At that time, the company employed a direct sales team of 2,288 staff members across its network, responsible for sourcing the majority of customers. External channels, such as direct sales agents, were also utilized for referring potential clients. Moreover, the company offers an online home loan fulfillment platform called e-Home Loans, allowing customers to apply for a home loan and submit necessary documents online.
As of December 31, 2022, the company’s consolidated borrowings (excluding debt securities) were Rs 28,433.74 crores, consolidated debt securities at Rs 18,944.55 crores, and consolidated subordinated liabilities were Rs 4,497.87 crores.
Issue Details
IBHFL is launching its 8th debt offering in a short time, with the previous one in December 2022. The company is issuing Secured, Redeemable Non-Convertible Debentures (NCDs) with a face value of Rs 1,000 each, amounting to a base size of Rs 100 crores. With a green shoe option for oversubscription up to Rs 900 crores, the overall issue size under Tranche V could reach Rs 1,000 crores (with a shelf limit of Rs 1,400 crores). The minimum application must be for 10 NCDs (Rs 10,000) and multiples of 1 NCD (Rs 1,000) afterwards. Subscription for the issue begins on March 3, 2023, and closes on or before March 17, 2023. The NCDs will be listed on BSE and NSE post allotment.
At least 75% of the net proceeds will be used for onward lending, financing, and repayment of existing borrowings’ interest and principal, with up to 25% allocated for general corporate purposes. The company will spend Rs. 22.50 crores on this Rs 1,000 crore debt offering.
Edelweiss Financial Services Ltd, A K Capital Markets Ltd, IIFL Securities Ltd, and Trust Investment Advisors Pvt Ltd are joint lead managers for the debt issue, with KFin Technologies Pvt Ltd serving as the registrar and IDBI Trusteeship Services Ltd. as the Debenture Trustee.
The debt offering has received CRISIL AA/Stable rating from CRISIL and ICRA AA/Stable from ICRA Ltd. Brickworks’ rating of the NCDs indicates a high degree of safety concerning the timely servicing of financial obligations and low credit risk.
Coupon rates for this debt offer range from 8.88% to 10.15%, with 24, 36, and 60 months of tenure. Interest payment options include annual, monthly, or cumulative. IBHFL provides a 0.25% incentive to existing bondholders of group companies and their shareholders. The allocation is set at 30% for institutional investors, 10% for non-institutional investors, 30% for HNIs, and 30% for retail investors. Allotment will only be made in Demat mode on a “first come, first served” basis.
Financial Performance (In Crore)
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth |
| 31-Mar-20 | 1,02,872.03 | 13,223.23 | 2,165.92 | 16,616.23 |
| 31-Mar-21 | 93,239.03 | 10,030.12 | 1,201.59 | 16,076.03 |
| 31-Mar-22 | 81,973.32 | 8,993.90 | 1,177.74 | 15,479.82 |
Important Dates
| Issue Open | Mar 3, 2023 – Mar 17, 2023 |
| Security Name | Indiabulls Housing Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 100.00 Crores |
| Issue Size (Shelf) | Rs 900.00 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 Ltd and [ICRA]AA (Stable) by ICRA Ltd |
| Tenure | 24, 36, and 60 Months |
| Series | Series I to VIII |
| Payment Frequency | Monthly, Annual and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustees | IDBI TRUSTEESHIP SERVICES LTD. |
NCD Rating
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, with such ratings considered to have a stable outlook.
Company Promoters
The promoters of the company are Sameer Gehlaut.
Objects of the Issue
The company has expressed its plans to use the funds raised through this Tranche V Issue for several purposes. These include onward lending, financing, and repayment of interest and principal on the company’s existing borrowings. Additionally, the funds will be utilized 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 click here.
How to Check Allotment Status
The registrar for Indiabulls Housing Finance NCD is KFin Technologies Limited. To check your allotment status, please click here.
FAQs
- What is the face value and lot size for the Indiabulls Housing Finance NCD March 2023?
The face value of each Indiabulls Housing Finance NCD in March 2023 is INR 1,000, and the minimum lot size is 10 NCDs.
- How frequently is interest paid for the Indiabulls Housing Finance NCD March 2023?
Interest payment frequencies for the Indiabulls Housing Finance NCD in March 2023 include monthly, annual, and cumulative options.
- What is the allotment basis for the Indiabulls Housing Finance NCD March 2023 offer?
Allotment of the Indiabulls Housing Finance NCDs for March 2023 will be done on a “first come, first served” basis.