October 22, 2023
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Indiabulls Housing Fin. Tranche III NCD Oct 2023 Details & Guidance
NCD Issue Opens on 20 October 2023
NCD Issue Closes on 3 November 2023
# NCD Guidance is given at the bottom of the post
About the Company:
Indiabulls Housing Finance is a non-deposit taking housing finance company (“HFC”) registered with the NHB. It is also a notified financial institution under the SARFAESI Act. It pre-dominantly offers housing loans and loans against property to its varied client base which comprises (i) salaried and employees; (ii) self-employed individuals; (iii) micro, small and medium-sized enterprises; and (iv) corporates. It focuses primarily on long-term secured mortgage-backed loans. It also offers mortgage loans to real estate developers in India in the form of lease rental discounting for commercial premises and construction finance for the construction of residential premises. A majority of its Loan Book comprises housing loans, including in the affordable housing segment. As of March 31, 2023, housing loans and non-housing loans, on standalone basis, constituted 57% and 43%, respectively, of its Loan Book. As on June 30, 2023, its Loan Book was Rs 47,483.47 crores, on a standalone basis, and as on June 30, 2023, its Loan Book was Rs 56,276.03 crores, on a consolidated basis.
It has now shifted to an asset light business model, focusing on co-lending of loans along with banks, other financial institutions and credit funds and an increased sell down of its loan portfolio.
As of June 30, 2023, it has a network of 217 branches spread across India which gives it a pan-India presence.Its presence across India allows it to undertake loan processing, appraisal, and management of customer relationships in an efficient and cost-effective manner. As of June 30, 2023, it has a direct sales team of 8,726 employees, on a consolidated basis, who are located across its network. This sales team is instrumental in sourcing the majority of its customers.
As at June 30, 2023, its consolidated borrowings (other than debt securities) were Rs 29,095.07 crores, consolidated debt securities were Rs 17,564.04 crores and consolidated subordinated liabilities were Rs 4,254.79 crores. It relies on long-term and medium-term borrowings from banks and other financial institutions, including external commercial borrowings and issuances of non-convertible debentures.
Get more details about the company @ https://www.indiabullshomeloans.com/
NCD Promoter:
The Company has no identifiable promoters and is a professionally managed company.
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.
| Indiabulls Housing Fin. Tranche III NCD Oct 2023 Detail | |
| Issue Open | October 20, 2023 – November 3, 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 |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Idbi Trusteeship Services Ltd. |
| NCD Allocation Ratio | |
| Category | NCD’s Allocated |
| Institutional | 30% |
| Non-Institutional | 10% |
| HNI | 30% |
| Retail | 30% |
| Total | 100% |
| NCD’s Offered by Category | |
| Category | NCD’s Reserved |
| Institutional | 3,00,000 |
| Non-Institutional | 1,00,000 |
| Retail | 3,00,000 |
| Category 4 | 3,00,000 |
| Total NCD’s | 10,00,000 |
| Indiabulls Housing Finance Limited NCD Coupon Rates | ||||||||||||
| Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 | Series 11 | Series 12 | |
| Frequency of Interest Payment | Annual | Monthly | Cumulative | Annual | Monthly | Cumulative | Annual | Monthly | Annual | Monthly | Annual | Monthly |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 24 Months | 36 Months | 36 Months | 36 Months | 60 Months | 60 Months | 84 Months | 84 Months | 120 Months | 120 Months |
| Coupon (% per Annum) | 9.65% | 9.25% | 9.65% | 9.90% | 9.48% | NA | 10.15% | 9.71% | 10.50% | 10.03% | 10.75% | 10.25% |
| Effective Yield (% per Annum) | 9.64% | 9.64% | 9.65% | 9.88% | 9.89% | 9.90% | 10.14% | 10.14% | 10.49% | 10.49% | 10.74% | 10.74% |
| Amount on Maturity (In Rs.) | Rs 1,000 | Rs 1,000 | Rs 1,203 | Rs 1,328 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 |
Indiabulls Housing Fin. Tranche III NCD Oct 2023 Details & Guidance
Objects of the Issue
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
Onward lending, financing, and repayment of interest and principal of existing borrowings of the company.
General corporate purposes.
.
| Company Financials | |||
| Indiabulls Housing Finance Limited Financial Information (Restated) | |||
| 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 |
| Net Worth | 17,303.42 | 16,616.23 | 16,076.03 |
| Reserves and Surplus | |||
| Total Borrowing | |||
| Amount in Rs Crore | |||
Address of the Company
Indiabulls Housing Finance Limited
5th Floor, Building No. 27,
KG Marg Connaught Place,
New Delhi – 110 001
NCD Lead Managers
Nuvama Wealth Management Ltd
Elara Capital (India) Pvt ltd
Trust Investment Advisors Pvt ltd
NCD Registrar
Kfin Technologies Limited
Indiabulls Housing Fin. Tranche III NCD Oct 2023
Red Herring Prospectus
Analysis & Guidance:
1. Frequent visitor to the NCD market.
2. In spite of high profits, its shares are quoted at low PE multiple and suggest low fancy.
3. NCD ratings considered to have a stable outlook.
4. Higher coupon rates.
Not so large/Small investment in relation to your NCD portfolio is recommended.
| Indiabulls Housing Fin. Tranche III NCD Oct 2023 | |
| Subscription Status | |
| On 20.10.2023 | @ 5.00 pm |
| Category | Subscription |
| Institutional | 0.00 T |
| Non-Institutional | 0.01 T |
| HNI | 0.04 T |
| Retail | 0.13 T |
| Total | 0.05 T |
