December 8, 2022
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Indiabulls Housing Finance Tranche IV NCD Nov 2022 Details
# NCD Guidance is given at the bottom of the post
# Latest Subscription Status 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. The company focuses primarily on long-term secured mortgage-backed loans.
The Company primarily offers housing loans and loans against property to its target client base of salaried and self-employed individuals and micro, small and medium-sized enterprises (“MSMEs”) and corporates. 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 comprise housing loans, including in the affordable housing segment. As of March 31, 2022, housing loans and non-housing loans constituted 62% and 38%, respectively of its Loan Book.
As of September 30, 2022, it has a network of 164 branches spread across India which gives the company a pan-India presence and allows it to interact with and service its customers. As of September 30, 2022, it has a direct sales team of 2,200 employees who were located across its network.
As on March 31, 2022, its Loan Book was Rs 61,589.26 crore and as on September 30, 2022, its Loan Book was Rs. 56,896.87 crore, on a consolidated basis.
As at September 30, 2022, March 31, 2022, 2021 and 2020, its consolidated gross NPAs as a percentage of its consolidated Loan Book were 3.73%, 3.76%, 3.16% and 2.32%, respectively, and its consolidated net NPAs (which reflect our gross NPAs less provisions for ECL on NPAs (Stage 3) for the six months ended September 30, 2022 and years ended March 31, 2022, 2021 and 2020, as a percentage of its consolidated Loan Book, were 2.16% (Rs.1228.97 Cr approx), 2.21%, 1.90% and 1.56%, respectively.
NCD Promoter
Mr. Sameer Gehlaut
NCD Rating
The NCDs proposed to be issued under this Issue have been rated CRISIL AA/Stable” by CRISIL Ratings Limited and ICRA AA by ICRA Limited with such ratings considered to have a stable outlook.
| Indiabulls Housing Finance Tranche IV NCD Nov 2022 Details | |
| Issue Open | Dec 1, 2022 – Dec 22, 2022 |
| 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 1,400.00 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 and ICRA AA |
| Tenor | 24, 36 and 60 months |
| Series | Series I to VIII |
| Payment Frequency | Monthly, Annual and Cumulative |
| Basis of Allotment | First Come First Serve Basis |
| NCD Allocation Ratio | |
| Category | NCDs Allocated |
| Institutional | 30% |
| Non-Institutional | 10% |
| HNI | 30% |
| Retail | 30% |
| NCDs offered by Category | |
| Category | NCDs Reserved |
| Institutional | 300,000 |
| Non-Institutional | 100,000 |
| HNI | 300,000 |
| Retail | 300,000 |
| Total NCD’s | 1,000,000 |
| CoupenRates | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 |
| Frequency of Interest Payment | Annual | Monthly | Cumulative | Annual | Monthly | Cumulative | Annual | Monthly |
| Nature | Secured | |||||||
| Tenor | 24 months | 24 months | 24 months | 36 months | 36 months | 36 months | 60 months | 60 months |
| Coupon Rate (Retail) | 9.30% | 8.94% | NA | 9.55% | 9.16% | NA | 9.80% | 9.39% |
| Effective Yield (% per Annum) | 9.29% | 9.30% | 9.30% | 9.54% | 9.54% | 9.55% | 9.79% | 9.80% |
| Amount on Maturity | Rs 1,000 | Rs 1,000 | Rs 1,194.95 | Rs 1,000 | Rs 1,000 | Rs 1,297.15 | Rs 1,000 | Rs 1,000 |
Objects of the Issue
The NCD purposes to raise funds for the following purposes:
For the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company.
General corporate purposes.
| Financial Snapshot (Rs. In Crore) | |||
| Period Ended | Total Revenue | Profit After Tax | Net Worth |
| 31-Mar-20 | 13223.22 | 2165.92 | 15538 |
| 31-Mar-21 | 10030.12 | 1201.59 | 16134 |
| 31-Mar-22 | 8993.90 | 1177.74 | 16674 |
| Address of the Company Indiabulls Housing Finance Limited M 62&63, First Floor, Connaught Place, New Delhi 110 001, Delhi NCD Lead Managers Edelweiss Financial Services Ltd, A.K. Capital Services Limited, IIFL Securities Ltd NCD Registrar Kfin Technologies Ltd |
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Analysis & Guidance:
To be on conservative side, the company has started curtailing its exposure to housing finance and accordingly, the total incomes and its net profits during last 3 years show down trend. The Net NPA of the company at the end of September 2022 is approx Rs.1229 Cr equivalent to its one year net profits. The Housing finance sector shows strong growth rates during last 18 months and the company is also expected to perform well. The coupon rates for different categories and different tenure are also very attractive. Invest reasonable amount based on your overall portfolio.
| Indiabulls Housing Finance Tranche IV NCD | |
| Subscription Status on 8 Dec 2022 @ 3.30 pm | |
| Category | Subscription (Times) |
| Institutional | 0.11 |
| Non-Institutional | 0.01 |
| HNI | 0.00 |
| Retail | 0.00 |
| Total | 0.03 |
