Chennai, December 02, 2022: 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 IV Issue opens on Thursday, December 01, 2022, and closes on Thursday, December 22, 2022.
The Tranche IV Issue has a base issue size of ₹ 100 crores with an option to retain oversubscription up to ₹ 900 crores, aggregating up to ₹ 1,000 crores (“Tranche IV Issue”). The Tranche IV Issue offers various series of NCDs for subscription with coupon rates ranging from 8.57% to 9.80% per annum. The NCDs are proposed to be listed on BSE Limited (“BSE”) and the National Stock Exchange of India (“NSE” together with BSE, the “Stock Exchanges”) with BSE as the Designated Stock Exchange for the Tranche IV 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 IV 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 8.89% to 9.30% and for Category III (High Net-worth Individual Investors) and Category IV (Retail Individual Investors) holders ranges from 9.29% to 9.80%. Interest payment modes for the NCDs are annual, 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 ₹ 1,297.15 per NCD and for Category III (High Net-worth Individual Investors) and Category IV (Retail Individual Investors) ranges from ₹ 1,000 to ₹ 1,315.10 per NCD. The Tranche IV Issue option for has staggered redemption by face value through annual payments under 36 months (Series IV and Series V) and 60 months (Series VII and Series VIII).
The Company is also offering an additional incentive of 0.25% to the Category III and Category IV Investors in the proposed Tranche IV 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
The Lead Managers to the Tranche IV 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 IV Issue and Kevin Technologies Limited is the registrar to the issue.
Net proceeds of the Tranche IV Issue, after meeting the expenditures of and related to the Tranche IV Issue, at least 75% shall be utilized 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 September 30, 2022, the consolidated cash and cash equivalents of the Company were ₹ 3,941.51 crores and the Borrowings (other than Debt Securities) were ₹ 30,264.10 crores on the balance sheet.
The terms of each series of NCDs offered under the Tranche IV Issue are set out below:
Series | I | II | III | IV* | V | VI | VII | VIII |
Frequency of Interest Payment | Annual | Monthly | Cumulative | Annual | Monthly | Cumulative | Annual | Monthly |
Minimum Application | ₹ 10,000 (10 NCDs) across all Series | |||||||
Face Value/ Issue Price of NCDs (₹/ NCD) | ₹ 1,000 | |||||||
In Multiples of thereafter (₹) | ₹ 1,000 (1 NCD) | |||||||
Type of Instrument | Secured NCDs | |||||||
Tenor | 24 Months | 24 Months | 24 Months | 36 Months | 36 Months | 36 Months | 60 Months | 60 Months |
Coupon (% per annum) for NCD Holders in Category I & II | 8.90% | 8.57% | NA | 9.05% | 8.70% | NA | 9.30% | 8.94% |
Coupon (% per annum) for NCD Holders in Category III & IV | 9.30% | 8.94% | NA | 9.55% | 9.16% | NA | 9.80% | 9.39% |
Effective Yield (per annum) for NCD Holders in Category I & II | 8.89% | 8.90% | 8.90% | 9.04% | 9.05% | 9.05% | 9.29% | 9.30% |
Effective Yield (per annum) for NCD Holders in Category III & IV | 9.29% | 9.30% | 9.30% | 9.54% | 9.54% | 9.55% | 9.79% | 9.80% |
Mode of Interest Payment | Through various modes available | |||||||
Redemption Amount (₹ / NCD) on Maturity for NCD Holders in Category I & II | ₹ 1,000 | ₹ 1,000 | ₹ 1,186.20 | Staggered redemption in three annual payments of: ₹ 333 for year 1; ₹ 333 for year 2; and ₹ 334 for year 3, starting from the first anniversary from the Deemed Date of Allotment | Staggered redemption in three annual payments of: ₹ 333 for year 1; ₹ 333 for year 2; and ₹ 334 for year 3, starting from the first anniversary from the Deemed Date of Allotment | ₹ 1,297.15 | Staggered redemption in five annual payments of ₹ 200 each, starting from the first anniversary from the Deemed Date of Allotment | Staggered redemption in five annual payments of ₹ 200 each, starting from the first anniversary from the Deemed Date of Allotment |
Amount (₹ / NCD) on Maturity for NCD Holders in Category III & IV | ₹ 1,000 | ₹ 1,000 | ₹ 1,194.95 | Staggered redemption in three annual payments of: ₹ 333 for year 1; ₹ 333 for year 2; and ₹ 334 for year 3, starting from the first anniversary from the Deemed Date of Allotment | Staggered redemption in three annual payments of: ₹ 333 for year 1; ₹ 333 for year 2; and ₹ 334 for year 3, starting from the first anniversary from the Deemed Date of Allotment | ₹ 1,315.10 | Staggered redemption in five annual payments of ₹ 200 each, starting from the first anniversary from the Deemed Date of Allotment | Staggered redemption in five annual payments of ₹ 200 each, starting from the first anniversary from the Deemed Date of Allotment |
Maturity (from the Deemed Date of Allotment) | 24 Months | 24 Months | 24 Months | 36 Months | 36 Months | 36 Months | 60 Months | 60 Months |
Redemption Date / Redemption Schedule | 24 Months | 24 Months | 24 Months | Staggered Redemption by Face Value as set out in “Terms of the Issue – Principal Redemption Schedule and Redemption Amounts” | Staggered Redemption by Face Value as set out in “Terms of the Issue – Principal Redemption Schedule and Redemption Amounts” | 36 Months | Staggered Redemption by Face Value as set out in “Terms of the Issue – Principal Redemption Schedule and Redemption Amounts” | Staggered Redemption by Face Value as set out in “Terms of the Issue – Principal Redemption Schedule and Redemption Amounts” |
Put and Call Option | Not Applicable |
*Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.
Principal Redemption Schedule and Redemption Amounts
Set out below is the principal redemption schedule and the redemption amount for the Series IV NCDs, Series V NCDs, Series VII NCDs, and Series VIII NCDs, in relation to which the principal outstanding will be redeemed in a staggered manner.
Series | Series IV and Series V | Series VII and Series VIII | ||
Redemption Schedule | Principal Outstanding | Redemption Schedule | Principal Outstanding | |
Face Value | ₹ 1,000.00 | ₹ 1,000.00 | ₹ 1,000.00 | ₹ 1,000.00 |
1st Anniversary* | ₹ 333.00 | ₹ 667.00 | ₹ 200.00 | ₹ 800.00 |
2nd Anniversary* | ₹ 333.00 |
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