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Indiabulls Housing Finance NCD Tranche V Issue Opens on Friday

One of the Largest pan India Housing finance companies, Indiabulls Housing Finance Limited (“Company” or “Issuer”), a non-deposit taking housing finance company registered with the National Housing Bank, has announced the public issue of secured, redeemable, non-convertible debentures of the face value of ? 1,000 each (“NCDs”). The Tranche V Issue opens on Friday, March 03, 2023 and closes on Friday, March 17, 2023.

The Tranche V Issue has a base issue size of ?100 crores with an option to retain oversubscription up to ?800 crores, aggregating up to ?900 crores (“Tranche V Issue”). The Tranche V Issue offers various series of NCDs for subscription with coupon rates ranging from 8.88% p.a. to 10.15% p.a. The NCDs are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India (“NSE” together with BSE, the “Stock Exchanges”) with BSE as the Designated Stock Exchange for the Tranche V Issue. The NCDs have been rated “CRISIL AA/Stable” by CRISIL Ratings Limited and “[ICRA]AA (Stable)” by ICRA Limited.

The NCDs under the Tranche V Issue have tenures of 24 months (Series I, II, III), 36 months (Series IV, V, VI), and 60 months (Series VII, VIII). Effective yield (per annum) for the NCD holders in Category I (Institutional Investors) & Category II (Non-Institutional Investors) ranges from 9.24% to 9.64% and for Category III (High Net-worth Individual Investors) and Category IV (Retail Individual Investors) holders ranges from 9.64% to 10.15%. Interest payment modes for the NCDs are annually, monthly or cumulative as per the series selected by the investors. Amount on maturity for the NCD holders in Category I (Institutional Investors) & Category II (Non-Institutional Investors) ranges from ?1,000 to ?1,309.70 per NCD and for Category III (High Net-worth Individual Investors) and Category IV (Retail Individual Investors) ranges from ?1,000 to ?1,327.75 per NCD. The Tranche V Issue option for staggered redemption by face value through annual and monthly payments under 36 months (Series IV and Series V) and annual and monthly payments under 60 months (Series VII and Series VIII). 

Category III and IV of Investors in the proposed Tranche V Issue who are also holders of NCD(s)/bond(s) previously issued by the Company, and/or its Subsidiaries as the case may be, and/or are equity shareholder(s) of Indiabulls Housing Finance Limited as the case may be (“Primary Holder(s)”) on the Deemed Date of Allotment and applying in Series I, Series II, Series IV, Series V, Series VII and/or Series VIII shall be eligible for additional incentive of 0.25% p.a. provided the NCDs issued under the proposed Tranche V Issue are held by the investors on the relevant Record Date applicable for payment of respective coupons, in respect of Series I, Series II, Series IV, Series V, Series VII and/or Series VIII.

Category III and IV of Investors in the proposed Tranche V Issue who are also Primary Holder(s) on the Deemed Date of Allotment applying in Series III and/or VI, the maturity amount at redemption along with the additional yield would be ?1,208.20 per NCD and/or ?1,336.85 per NCD respectively provided the NCDs issued under the proposed Tranche V Issue are held by the investors on the relevant Record Date applicable for redemption in respect of Series III and/or Series VI.

The additional incentive will be maximum of 0.25% p.a. for Category III and IV Investors in the proposed Tranche V Issue, who are also Primary Holder(s)on the deemed date of allotment.

On any relevant Record Date, the Registrar and/or our Company shall determine the list of the Primary Holder(s) of this Tranche V Issue and identify such Investor/ NCD Holders, (based on their DP identification and /or PAN and/or entries in the Register of NCD Holders) and make the requisite payment of additional incentive.

The additional incentive will be given only on the NCDs allotted in this Tranche V Issue i.e., to the Primary Holder(s). In case if any NCD is bought/acquired from secondary market or from open market, additional incentive will not be paid on such bought/acquired NCD.

In case the Primary Holder(s) sells/ gifts/ transfer any NCDs allotted in this Tranche V Issue, additional incentive will not be paid on such sold/ gifted/ transferred NCD except in case where NCDs are transferred to the joint holder/nominee in case of death of the primary holder.

The Lead Managers to the Tranche V Issue are Edelweiss Financial Services Limited, A. K. Capital Services Limited, IIFL Securities Limited and Trust Investment Advisors Private Limited. IDBI Trusteeship Services Limited is the Debenture Trustee to the Tranche V Issue and KFin Technologies Limited is the registrar to the Tranche V issue.

Net proceeds of the Tranche V Issue, after meeting the expenditures of and related to the Tranche V Issue, at least 75% shall be utilised for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and up to 25% for general corporate purposes.

As at December 31, 2022, the consolidated cash and cash equivalents of the Company stood at ? 3,716.81 crores and the Borrowings (other than Debt Securities) was ?28,433.74 crores on balance sheet. Its loan book as of December 31, 2022 stood at ? 53,922.14 crores.

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