Indiabulls Housing Finance Limited offered secured, redeemable, non-convertible debentures (secured NCDs) named Indiabulls Housing Fin. Tranche VI NCD May 2024. The issue is open for subscription between May 13 and May 27, 2024. The base issue size was Rs 100 crore, with an option to oversubscribe for another Rs 100 crore, bringing the total tranche size to Rs 200 crore. This tranche is part of a larger shelf offering of up to Rs 2,000 crore.
Each NCD has a face value of Rs 1000 and can be purchased in minimum lots of 10 NCDs (although the market lot is just 1 NCD). The NCDs are rated “CRISIL AA/Stable” by CRISIL Ratings Limited and “[ICRA]AA (Stable)” by ICRA Limited, indicating a stable outlook. Investors can choose from tenors of 24, 36, 60, 84, and 120 months, with interest paid monthly, annually, or cumulatively. Allotment will be done on a first-come, first-served basis. IDBI Trusteeship Services Ltd. acts as the debenture trustee for this issue.
| Particulars | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 |
| Frequency of Interest Payment | Annual | Monthly | Cumulative | Annual | Monthly | Cumulative |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 24 Months | 36 Months | 36 Months | 36 Months |
| Coupon (% per Annum) | 9.65% | 9.25% | NA | 9.90% | 9.48% | NA |
| Effective Yield (% per Annum) | 9.65% | 9.65% | 9.65% | 9.90% | 9.90% | 9.90% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,000.00 | Rs 1,202.32 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,327.38 |
| Particulars | Series 7 | Series 8 | Series 9 | Series 10 | Series 11 | Series 12 |
| Frequency of Interest Payment | Annual | Monthly | Annual | Monthly | Annual | Monthly |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 60 Months | 60 Months | 84 Months | 84 Months | 120 Months | 120 Months |
| Coupon (% per Annum) | 10.15% | 9.71% | 10.50% | 10.03% | 10.75% | 10.25% |
| Effective Yield (% per Annum) | 10.15% | 10.15% | 10.50% | 10.50% | 10.74% | 10.75% |
| Amount on Maturity (In Rs.) | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,000.00 |
For further financing, lending, and principal and interest repayment of the Company’s current borrowings; as well as for general corporate reasons.
Both CRISIL Ratings Limited and ICRA Limited have rated this issue as CRISIL AA/Stable and ICRA AA (Stable), respectively. Securities with these ratings are seen to offer a high level of safety when it comes to prompt payment of debts. These assets have a very minimal credit risk.
Regarding financial performance, IHFL has reported total income and net profits of Rs 10030.12 crore and Rs 1201.59 crore (FY21), Rs 8993.90 crore and Rs 1177.74 crore (FY22), Rs. 8725.79 crore and Rs. 1127.68 crore (FY23) on a consolidated basis. As a result, both its top and bottom lines showed downward trends. With total revenue of Rs. 6369.64 crore, it made a net profit of Rs 894.96 crore during the third quarter of FY24, which concluded on December 31, 2023.
Its net NPAs were 1.98% as of December 31, 2023. As of the specified date, its debt-to-equity ratio was 2.64; after this issuance, it will increase to 2.65. As of the specified date, free reserves totaling Rs. 18180.91 crore backed the company’s equity capital of Rs. 96.81 crore.
Its 14th debt offer from the Indiabulls group’s housing finance arm comes soon after the previous one in March 2024. Investors who wish to invest for a long time in such instruments as this, which has received an AA/Stable grade from both CRISIL and ICRA, while also offering higher coupon rates for an additional return may as well keep their money. Investors looking for a steady income may park funds for the medium to long term.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
Published on: May 16, 2024, 2:53 PM IST
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
