Indiabulls Housing Finance was incorporated in 2005. The company is engaged in providing mortgages against lending services. The company is one of the largest housing finance companies in the country and is the main flagship company of the Indiabulls Group that Sameer Gehlaut has founded. The company’s service portfolio includes various services such as Home Loans, Rural Home Loans, Home Renovation Loans, and Home Extension Loans.
In the current situation, the company has 141 registered offices in 95 cities with a team of 1,659 employees and more than one million customers all over India. Indiabulls Housing Finance is also engaged in quick and convenient loans and competitively priced home loans, housing loans, and mortgage-backed finance. The company is also engaged in the business operation of residential construction finance.
The company holds a Pan India Distribution and Network where the company’s registered offices have been stated as a head office, branch offices, master service centers, and service centers. Indiabulls Housing Finance has also started its business operation of an online home loan fulfillment platform called e-Home Loans.
Currently, the consolidated borrowings of the company, other than the company’s debt securities, are at Rs. 31,168.60 crores. The consolidated debt securities of the company are Rs. 25,531.47 crores. The consolidated subordinated liability of the company is Rs. 4,693.06 crores. The major business operation of the company is on long-term and medium-term borrowings and debt securities from NBFCs and Banks. Let’s have a look at Indiabulls Housing Finance NCD on TradingBuzzr.
OBJECTS OF THE ISSUE:
The company stated that the funds been raised from the proceeds of the NCD would be utilized to:
- For onward lending.
- Financing along with the repayment and the prepayment of the interest and the principal of the outstanding dues of the company.
- General Corporate Purposes.
INDIABULLS HOUSING FINANCE NCD DETAIL:
Indiabulls Housing Finance Limited has recently announced its fourth debt-based NCD offer within 5 years. The company’s board recently approved a Secured; Redeemable Non-Convertible Debentures offer with Rs. 1000 which aggregates to a total sum of Rs. 100 crores. The offer also contains a greenshoe option to retain oversubscription of Rs. 900 crores. The NCD offer is thus Rs. 1000 crores. Post allotment of the NCDs, the stock will be listed on BSE and NSE. Indiabulls Housing Finance further stated that of the funds been raised via NCD, 75% of it would be used for onward lending, repayment of interest, and financing, while the rest, 25%, for general corporate purposes.
The NCD offer of the Indiabulls Housing Finance has been managed jointly by Edelweiss Financial Services Limited, IIFL Securities Limited, A K Capital Markets Limited, and Trust Investment Advisors Pvt. Limited. The NCD offers registrar is KFin Technologies Pvt. Limited. The NCD-based debt offer of the company has coupon rates that range from 8.05 % to 9.25 %, with a tenure period of around 24 months, 36 months, and 60 months. The NCD offer of the company also includes a Series on terms of Annual, Monthly, and Cumulative interest payment options. Indiabulls Housing Finance also offers an additional 0.25% incentive to the existing bondholders of their subsidiary company and group company.
| Issue Open | March 30, 2022 to April 22, 2022 |
| Security Name | India bulls Housing Finance Limited |
| Security Type | Secured, Redeemable Non-Convertible Debentures |
| Base Issue Size | Rs. 100.00 Crores |
| Shelf Issue Size | Rs. 900.00 Crores |
| Issue Price | Rs. 1000 per Non-Convertible Debentures |
| Face Value | Rs. 1000 each Non-Convertible Debentures |
| Minimum Lot size of NCD | 10 NCD that corresponds to Rs.10,000 |
| Market Lot of the NCD | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | Credit rating as per CRISIL: CRISIL AA/ Stable and BWR AA+/ Stable |
| Tenor of the NCD | 24, 36 and 60 months |
| Series | Series I to VIII |
| Payment Frequency of the NCD | Monthly, Annual and Cumulative |
| Basis of Allotment of the NCD | First Come First Serve Basis |
| Options | Tenure | Frequency of Interest Payment | Coupon (% per annum) for NCD Holders in Category I, & II | Coupon (% per annum) for NCD Holders in Category III & IV | Redemption Amount (₹ /NCD) on Maturity for NCD Holders in Category I & II | Redemption Amount (₹ /NCD) on Maturity for NCD Holders in Category III & IV | Effective Yield for NCD Holders in Category I, & II | Effective Yield for NCD Holders in Category III & IV | Put and Call Option |
| I | 24 months | Annual | 8.35% | 8.75% | 1,000 | 1,000 | 8.34% | 8.74% | NA |
| II | 24 months | Cumulative | NA | NA | 1,174.50 | 1,182.95 | 8.35% | 8.75% | NA |
| III | 24 months | Monthly | 8.05% | 8.42% | 1,000 | 1,000 | 8.36% | 8.75% | NA |
| IV | 36 months | Annual | 8.50% | 9.00% | 1,000 | 1,000 | 8.49% | 8.99% | NA |
| V | 36 months | Cumulative | NA | NA | 1,277.60 | 1,295.35 | 8.50% | 9.00% | NA |
| VI | 36 months | Monthly | 8.20% | 8.66% | 1,000 | 1,000 | 8.51% | 9.01% | NA |
| VII | 60 months | Annual | 8.75% | 9.25% | 1,000 | 1,000 | 8.74% | 9.24% | NA |
| VIII | 60 months | Monthly | 8.43% | 8.89% | 1,000 | 1,000 | 8.76% | 9.26% | NA |
NCD ALLOCATION RATIO:
| Category of the Allocation | NCD Allocation | NCD’s Reserved |
| Institutional Investors | 30% | 300,000 |
| Non-Institutional Investors | 10% | 100,000 |
| High Net worth Investors | 30% | 300,000 |
| Retail Investors | 30% | 300,000 |
| Total NCD’s | 100 % | 1,000,000 |
COMPETITIVE STRENGTHS OF INDIABULLS HOUSING FINANCE COMPANY:
- Indiabulls Housing Finance has one of the largest pan-India distribution networks in the Housing Finance Sector.
- The company also holds a strong financial performance in the past and a solid credit rating.
- The company has access to diversified funding sources and a diversified service portfolio.
- Indiabulls Housing Finance’s major strength is its prudent credit and collection policy that has helped them attain financial and operational profitability.
- The company also has an effective database and technology setup.
- The company holds expertise in disbursement and providing loans to Self-Employed Individuals along with SMEs and MSMEs.
- Indiabulls Housing Finance has a strong management team, an experienced Board of Directors, and an innovative promoter base group.
- The company has a strong capital position with healthy liquidity and a Matched ALM scheme. In totality, it helps maintain a good and stable asset quality of the company.
WEAKNESS AND THREATS OF INDIABULLS HOUSING FINANCE NCD:
- The Indiabulls Housing Finance net profits are currently showing a declining trend as its NPA is rising over the quarters, which is a major concern for the company.
- The company has poor financial performance with a lukewarm response.
- The company’s revenue and the operating margins on the top and bottom lines are declining.
- Another major threat to the company is the company’s Loan Book, which is getting less seasoned due to the pandemic.
PROMOTERS OF THE COMPANY:
The promoters of the company are as follows:
- Mr. Sameer Gehlaut
COMPANY FINANCIALS:
| Particulars | For the year ending with the amount as in Rs in Crores | ||||
| 31 March 21 | 31 March 20 | 31 March 19 | |||
| Total Assets | 93,237.87 | 102,872.03 | 130,103.92 | ||
| Total Revenue | 10,030.12 | 13,223.23 | 17,027.04 | ||
| Profit After Tax | 1,201.59 | 2,165.92 | 4,057.79 |
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ISSUE RATING:
The NCDs offer of the company has been rated at AA+ rating security while BWR has stated an AA+/Negative by Brickworks Rating India Pvt. Limited. CRISIL has stated a AA/Stable rating to the issue offer. Thus, the NCD offer of the company falls under the category of the investment grade, underlying credit risk, which is very low in it. It also accounts for the timely servicing of the financial obligations within the NCD Offer. The coupon rate of the NCD offer offered by the company is between 8.42% to 9.25% which is way much higher than the FD rates of 3 to 4%. The credit rating signifies a stable outlook.
INDIABULLS HOUSING FINANCE CONTACT DETAILS:
Indiabulls Housing Finance Limited
One International Centre,
Tower 1, 18th Floor,
Senapati Bapat Marg,
Elphinstone Road, Mumbai – 400 013
Phone: +91 22 6189 1400
Email: helpdesk@indiabulls.com
Website: www.indiabullshomeloans.com
INDIABULLS HOUSING FINANCE NCD REGISTRAR:
KFin Technologies Private Limited
Selenium Tower B, Plot 31-32, Gachibowli, Nanakramguda,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Fax: +91 40 2343 1551
Email: einward.ris@kfintech.com
Website: www.kfintech.com
