Indiabulls Housing Finance Limited NCD

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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:
  1. Onward lending and financing.
  2. Repayment of interest and principal on existing borrowings.
  3. 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.