INDIABULLS HOUSING FINANCE LIMITED

BondsIndia

Opening Date

13 May 2024

Closing Date

27 May 2024

Yield

Upto 10.75%

Tenure

Upto 120 Months

BondsIndia
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INDIABULLS HOUSING FINANCE LIMITED

Ongoing IPO

INDIABULLS HOUSING FINANCE LIMITED

Opening Date
13 May 2024

BondsIndia

Closing Date
27 May 2024

bondsindia

Time to close

Yield
Upto 10.75%

Tenure
Upto 120 Months

IPO Details

IPO Details

Issue Size (Including Green Shoe Option) 200
Face Value1000
CouponUpto 10.75%
Minimum Number of Bonds10
Lot Size (Multiplier)1
Allotment Date (Tentative)31 May 2024
Listing Date (Tentative)3 Jun 2024
Exchange Bid Time (24 Hours)10:00 to 17:00

Documents attached

Term Sheet
BondsIndia

*Allotment on first come first serve basis

 

ISSUE STRUCTURE

Series
I
II
III
IV
V
VI
VII
VIII
IX
X
XI
XII
Nature Of NCDs
Secured Reedemable Non-Convertible Debenture
Who Can Apply
Everyone
Tenure
24 Months
24 Months
24 Months
36 Months
36 Months
36 Months
60 Months
60 Months
84 Months
84 Months
120 Months
120 Months
Frequency of Interest payment
YEARLY
MONTHLY
CUMULATIVE
YEARLY
MONTHLY
CUMULATIVE
YEARLY
MONTHLY
YEARLY
MONTHLY
YEARLY
MONTHLY
Best Coupon Rate (% p.a.) for:
Category 1
9.25 %
8.88 %
-N.A.-
9.40 %
9.02 %
-N.A.-
9.65 %
9.25 %
10.00 %
9.57 %
10.25 %
9.80 %
Category 2
9.25 %
8.88 %
-N.A.-
9.40 %
9.02 %
-N.A.-
9.65 %
9.25 %
10.00 %
9.57 %
10.25 %
9.80 %
Category 3
9.65 %
9.25 %
-N.A.-
9.90 %
9.48 %
-N.A.-
10.15 %
9.71 %
10.50 %
10.03 %
10.75 %
10.25 %
Category 4
9.65 %
9.25 %
-N.A.-
9.90 %
9.48 %
-N.A.-
10.15 %
9.71 %
10.50 %
10.03 %
10.75 %
10.25 %
Effective Yield (% p.a.) for:
Category 1
9.25 %
9.25 %
9.25 %
9.40 %
9.40 %
9.40 %
9.65 %
9.65 %
10 %
10 %
10.25 %
10.24 %
Category 2
9.25 %
9.25 %
9.25 %
9.40 %
9.40 %
9.40 %
9.65 %
9.65 %
10 %
10 %
10.25 %
10.24 %
Category 3
9.65 %
9.65 %
9.65 %
9.90 %
9.90 %
9.90 %
10.15 %
10.15 %
10.50 %
10.50 %
10.74 %
10.75 %
Category 4
9.65 %
9.65 %
9.65 %
9.90 %
9.90 %
9.90 %
10.15 %
10.15 %
10.50 %
10.50 %
10.74 %
10.75 %

How to invest in the INDIABULLS HOUSING FINANCE LIMITED IPO?

Application process on BondsIndia platform is simple and seamless.

Click on the details of the company on the home page

Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank and Demat details

Then, confirm the quantity and price and select payment method.

That's all folks , bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with BondsIndia.

Why choose BondsIndia?

BondsIndia is an online platform for fixed-income securities such as IPOs, bonds, 54EC bonds, and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, expert advice, and keeping a close watch on the market sentiment. BondsIndia brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with competitive price before anyone else.

BondsIndia ditches the traditional ways of investing by offering a Technology based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose BondsIndia for its sleek interface, fail-safe communication and step-by-step guide to ensure a well-placed bid. You can apply for Edelweiss Financial Services Limited IPO on BondsIndia's website.

Place your bid in three simple steps:

1

Key in Basic Details

2

Choose the IPO Series

3

Place the bid

How to invest in the
INDIABULLS HOUSING FINANCE LIMITED IPO?

Application process on BondsIndia platform is simple and seamless.

  • Click on the details of the company on the home page
  • Fill in the Application form with the basic details such as Name, email address, mobile number, Pan details, bank, and Demat details
  • Then, confirm the quantity and price and select a payment method.
  • That's all folks, bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with BondsIndia.

AUM

Rs 74,414 crores

GNPA

2.90%

IBHFL is one of the larger housing finance companies HFCs in India. In its current legal form, its origins date back to April 1, 2012, when Indiabulls Financial Services Ltd was reverse merged with it. The process was completed on March 8, 2013, following the Delhi High Courts approval on December 12, 2012. After the merger, IBHFL continues to operate as an HFC registered with the National Housing Bank.

The company, along with its subsidiary Indiabulls Commercial Credit Ltd, focuses on asset classes such as mortgages and commercial real estate. As part of an institutionalisation exercise, the promoter group held less than 1% stake in the entity as on June 30, 2023, and the company is professionally managed. Further, the company has initiated a rebranding exercise to simplify its corporate structure and signify the focus towards retail mortgage lending.

For fiscal 2023, IBHFL had profit after tax PAT of Rs 1,128 crore on total income of Rs 8,725 crore, compared with Rs 1,178 crore and Rs 8,994 crore, respectively, in the previous fiscal. During the quarter ended June 30, 2023, IBHFL reported PAT of Rs 296 crore on total income of Rs 1,916 crore, compared with Rs 287 crore and Rs 2,078 crore, respectively, during the corresponding period of the previous fiscal.

Strong capitalisation with healthy cover for asset-side risks

Capitalisation is marked by sizeable networth of Rs 17,576 crore as on June 30, 2023, supported by healthy internal cash accrual. Accretion of Rs 1,988 crore from sale of bulk of its investment in OakNorth Bank in fiscal 2021 also strengthened the capital position. Networth coverage for net non-performing assets NPAs was comfortable at around 15.7 times as on June 30, 2023. Further, consolidated Tier 1 capital adequacy ratio CAR was healthy at 26.7%, as was overall CAR at 31.2%. Consolidated on book gearing was comfortable at 2.9 times as on June 30, 2023 3.0 times as on March 31, 2023. Given the strong liquidity that IBHFL maintains on a steady-state basis, net gearing was 2.2 times as on March 31, 2023 2.6 times a year ago.

$Comfortable asset quality in retail segment

IBHFL reported overall gross non-performing assets GNPAs of 2.87% as on June 30, 2023 compared to 2.86% as on March 31, 2023 3.21% as on March 31, 2022. The reduction in GNPAs over fiscal 2022 has been driven by improvement in asset quality GNPAs of the developer loan book from 13.33% as on March 31, 2022 to 9.06% as on March 31, 2023.The GNPAs in home loans and Loan Against Property LAP segments have increased from 1.48% and 2.94% as on March 31, 2022 to 1.64% and 3.40% in March 31, 2023, respectively.

Sizeable presence in the retail mortgage finance segment:

IBHFLu2019s total AUM stood at Rs 65,787 crore as on June 30, 2023. The share of housing loans within the overall AUM continues to increase and was at 72% as on June 30, 2023 as compared to 50% as on March 31, 2015. The companyu2019s LAP portfolio accounted for 16% of the overall AUM as on June 30, 2023, with the remaining 13% being constituted of commercial credit. The proportion of housing loans and LAP is expected to increase further from current levels over the medium term.

Successful transition to new business model to be established

The management has recalibrated its business model, under which IBHFL is gradually moving towards a less risky and asset light framework, wherein disbursements will primarily be in the HL and LAP segments with a potential 60:40 split, with a low proportion of incremental disbursals in developer finance portfolio. Further, on a steady state basis, of the overall disbursals, a significant proportion will be either co-originated or sold down to banks.

IBHFL has started working towards this new model and thus far, has entered into a co origination agreement with eight financial institutions. Disbursements amounting to Rs 7,844 crore were done in fiscal 2023 under these agreements. However, the managementu2019s ability to increase the disbursement pace, establish tie-ups with multiple banks and successfully scale up this model, while maintaining healthy profitability and asset quality is to be witnessed. However, the company has demonstrated good execution capabilities in scaling up businesses in the past.

Susceptibility to asset quality risks arising from the commercial real estate portfolio

Asset-quality risks arising from a sizeable, large-ticket commercial credit portfolio of Rs 7,573 crore as on June 30, 2023, persist, and could impact the company portfolio performance. This portfolio exhibits high concentration average ticket size of Rs 150 crore with the top 10 exposures forming 62% of the corporate AUM and having a median rating of BBB. Thus even a few large accounts experiencing stress could impact the overall asset quality.

The share of commercial credit in overall AUM has decreased over the last few years to 13% on June 30, 2023 from 17% on March 31, 2019. The management has launched an alternative investment fund AIF platform for this segment wherein Rs 200 crore has been disbursed to a leading developer. Further, the process of filing for regulatory approvals is underway for launching two more AIFs. Going forward, the company may continue to do selective lending to existing borrowers in this space.

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