September 12, 2023
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Indiabulls Housing Finance TrancheII 2023 Details
NCD Issue Opens on 6 September 2023
NCD Issue Closes on 20 September 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 Finance TrancheII NCD 2023 Detail | |
| Issue Open | September 6, 2023 – September 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 and120 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% |
| Retail | 30% |
| Category 4 | 30% |
| NCD’s Offered by Category | |
| Category | NCD’s Reserved |
| Institutional | 6,00,000 |
| Non-Institutional | 2,00,000 |
| Retail | 6,00,000 |
| Category 4 | 6,00,000 |
| Total NCD’s | 20,00,000 |
| 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% | NA | 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 1,202 | Rs 1,327 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 |
Objects of the Issue
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
For the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company; and
General corporate purposes.
| Company Financials | |||
| Indiabulls Housing Finance TrancheII NCD July 2023 Financial Information (Restated Consolidated) | |||
| Period Ended | 31-Mar-21 | 31-Mar-22 | 31-Mar-23 |
| Assets | 93,239.03 | 81,973.32 | 74,945.24 |
| Revenue | 10,030.12 | 8,993.90 | 8,725.79 |
| Profit After Tax | 1,201.59 | 1,177.74 | 1,127.68 |
| Net Worth | 16,076.03 | 16,616.23 | 17,303.42 |
| 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 Limited
Elara Capital (India) Private Limited
Trust Investment Advisors Private Limited
NCD Registrar
Kfin Technologies Limited
Indiabulls Housing Finance TrancheII 2023
Red Herring Prospectus
Analysis & Guidance:
The Gross NPA and Net NPA ratios are.
1)% of Gross Non-Performing Assets (Gross NPA / Loan Book) 3.67%
2) % of Net Non-Performing Assets (Net NPA / Loan Book) 2.14%.
3)The company has shown more or less stable net profit figures during last 3 years.
4) Compared to sector PE ratio of 20.42, the scrip is available at PE multiple of 7.78, indirectly suggest not so fancy for its shares.
5) Since the company is offering higher coupen rates, relatively small investment in this NCD may be done.
| Indiabulls Housing Finance TrancheII 2023 | |
| Subscription Status | |
| On 12.09.2023 | @ 5.00 pm |
| Category | Subscription |
| Institutional | 0.08 T |
| Non-Institutional | 0.00 T |
| HNI | 0.00 T |
| Retail | 0.00 T |
| Total | 0.61 T |
