Company Overview: Indiabulls Housing Finance Limited NCD
- Incorporation: Founded in 2005, Indiabulls Housing Finance Limited is a leading mortgage lending service provider in India.
- Registration: Registered with the National Housing Bank (NHB) as a non-deposit-taking housing finance company.
- Size: One of India’s largest housing finance companies and a flagship entity of the Indiabulls Group.
- Loan Services: Provides housing loans, loans against property, mortgage loans for real estate developers, including lease rental discounting for commercial premises and construction finance.
- Clientele: Offers services to salaried employees, self-employed individuals, MSMEs, and corporates.
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. |
Network and Team:
- Branches: As of September 30, 2023, the company operates through a network of 218 branches across India.
- Sales Team: Employs 1,745 individuals in its direct sales team, as of September 30, 2023.
Loan Composition:
- Loan Breakdown: As of March 31, 2023, housing loans constituted 57% of the company’s loan portfolio, while non-housing loans made up the remaining 43%.
Credit Ratings:
- Long-Term Ratings: Holds a “AA; Outlook Stable” rating from CRISIL and ICRA, a “AA; Outlook Negative” rating from CARE Ratings, and a “AA+; Outlook Stable” rating from Brickwork Ratings for non-convertible debentures and subordinated debt programs.
- NCD Rating: The proposed NCDs for this issue have received CRISIL AA/Stable and ICRA AA (Stable) ratings, both with a stable outlook.
NCD Allocation Ratio:
Category  |
NCD’s Allocated |
| Institutional |
30% |
| Non-Institutional |
10% |
| HNI |
30% |
| Retail |
30% |
Promoter Structure:
- No Identifiable Promoters: The company is professionally managed and does not have identifiable promoters.
Financial Performance:
- Revenue Decline: The company’s revenue decreased by -2.98% between the financial years ending on March 31, 2023, and March 31, 2022.
- Profit After Tax: PAT dropped by -4.25% during the same period.
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 1,000.00 |
Rs 1,000.00 |
Rs 1,202.60 |
Rs 1,327.75 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Rs 1,000.00 |
Objectives of the Issue:
- Fund Utilization: The net proceeds from the issue will be allocated for:
- Onward lending and financing.
- Repayment of interest and principal on existing borrowings.
- General corporate purposes.
Conclusion: Indiabulls Housing Finance Limited, a prominent player in the Indian mortgage lending sector, is seeking funding through NCDs with favorable credit ratings. The company, devoid of identifiable promoters, is a professionally managed entity. It operates with a substantial network of branches and a dedicated sales team, offering diverse loan products. Despite a recent decline in revenue and PAT, it is looking to raise funds for lending activities and general corporate purposes.
