IBHFL NCD is all set for the public issue and is a home financing business (“HFC”) registered with the NHB. India Bulls Housing Finance primarily concentrates on long-term secured loans with mortgage guarantees. Target clientele of IBFHL includes salaried and self-employed individuals as well as micro, small, and medium-sized businesses (“MSMEs”) and corporates, to whom house loans and loans secured by property are typically provided.
Bulls Housing Finance: Business
It provides mortgage loans in the form of construction financing for the building of residential properties as well as lease rental discounting for commercial properties to real estate developers in India. Housing loans, particularly those for affordable housing, make up most of the loans in the loan book of IBFHL. The IBFHL Loan Book consisted of 62% housing loans and 38% non-housing loans as of March 31, 2022. With more emphasis on co-lending loans with banks, other financial institutions, and credit funds as well as a greater sell-down of IBFHL’s loan portfolio, IBHFL has now switched to an asset-light business model.
IBHFL: NCD Allocation Ratio
IBHFL: NCD Offered BY Category
India bulls Housing Finance NCD Details
After September 2016, IBHFL is now releasing its fourth debt offer in a short period of time. The company is releasing its offer of Secured, Redeemable Non-Convertible Debentures with a base size of Rs. 100 crore and a green shoe option to retain oversubscription of Rs. 900 crores, making a total issue size of Rs. 1000 crore under Tranche I. (It has a shelf limit of Rs. 1400 cr.).Applications can be made in increments of 1 NCD, or Rs. 1000, with a minimum application amount of 10 NCDs, or Rs. 10,000. The issue’s subscription period begins on September 5, 2022, and it ends on or before September 5, 2023.
|Subscription Dates||5 – 22 September 2022|
|Security Type||Secured, Redeemable, Non-Convertible Debentures|
|Face Value||INR1,000 per NCD|
|Issue Price||INR1,000 per NCD|
|Issue Size (Base)||INR100 crore|
|Overall Issue Size (including oversubscription)||INR1,000 crore|
|Minimum Lot size||10 NCDs|
|Market Lot||1 NCD|
|Tenor||24 months |
|Credit Rating||CRISIL AA/Stable |
|Category Reservation||Category 1 (QIB): 30% |
Category 2 (NII): 10%
Category 3 (HNI): 30%
Category 4 (Retail): 30%
|Basis of Allotment||First Come First Serve|
|Listing On||NSE, BSE|
India bulls Housing Finance: Industry Overview
(GDP) of India is expected to increase by 8.7% in the fiscal year 2022. Since the GDP shrank by 6.6% in fiscal 2021, this is primarily the result of a higher base. The forecast for the fiscal year 2022 real GDP in absolute terms is at Rs 147.7 lakh crore, which is slightly higher than the earlier estimate of Rs 147.5 trillion, indicating that the omicron form of Covid-19’s drawbacks has been limited. It is also interesting that GDP is just 1.8% higher than the pre-pandemic level (fiscal 2020 despite the significant output loss experienced last fiscal
Private final consumption expenditure (PFCE), the main demand-side driver, is currently anticipated to have made up some of the lost ground from the pre-pandemic level.PFCE is currently 1.2% higher than the fiscal 2020 level of Rs 82.6 lakh crore at Rs 83.6 lakh crore. However, given that PFCE growth is still lagging behind overall GDP growth and that its share in GDP is lower than it was in fiscal 2020, it is possible that the consumer recovery would be sluggish due to challenges including high inflation and a lack of direct government support.
IBHFL Company strengths
- It is one of the largest pan-India HFCs with strong financial performance and credit ratings.
- IBHFL has access to diversified funding sources.
- IBHFL is having expertise in providing loans to Self-Employed Individuals and MSMEs.
India bulls Housing Finance Company weakness
- Future events, which are incredibly unclear and impossible to forecast, will determine how the recent coronavirus (COVID-19) outbreak affected IBHFL’s activities, cash flows, results of operations, and financial situation.
- Any inability to successfully manage and maintain IBHFL business growth could have a negative impact on IBHFL’s operations, financial condition, results of operations, and cash flows.
- As a result of its vulnerability to interest rate volatility and the potential for future interest rate and maturity mismatches between its assets and liabilities, IBHFL may experience liquidity problems.
IBHFL NCB Manager
Edelweiss Financial Services Limited
Edelweiss House, Off CST Road, Kalina
Mumbai – 400 098, Maharashtra, India
Phone: +91 22 4086 3535
India bulls Housing Finance (IBHFL) NCD Registrar
Kfin Technologies Limited
Selenium Tower B, Plot No – 31 & 32,
Financial District, Nanakramguda,
Serilingampally, Hyderabad Rangareddi,
500 032, Telangana, India
Phone: +91 40 6716 2222