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IPO

AA

Opening Date

19 Apr 2022

Closing Date

10 May 2022

Coupon Rate

Upto 11.00%

Tenure

Upto 36 Months

IPO Details

Issue Size (Including Green Shoe Option) ₹200.00 crores
Face Value ₹1000 per NCD
Minimum Number of Bonds 10 NCDs (Rs.10,000) & in multiple of 1NCD
Lot Size (Multiplier) 1
Allotment Date (Tentative) 17th May 2022
Listing Date (Tentative) 19th May 2022
Exchange Bid Time (24 Hours) 10:00 - 17:00

Documents attached

Information Memorandum

 

BondsIndia
Product Note

 

BondsIndia

*Allotment on first come first serve basis

ISSUE STRUCTURE

Series
I
** II
III
IV
V
VI
VII
Frequency of Interest payment
Cumulative
Annual
Cumulative
Monthly
Annual
Cumulative
Monthly
Minimum Application
10000 (10 NCDs) across all Series
Face Value/ Issue Price of NCDs (₹/ NCD)
1000
In multiples of thereafter ()
10000 (1 NCD)
Type of Instrument
Secured NCDs
Tenure
370
Days
24
Months
24
Months
24
Months
36
Months
36
Months
36
Months
Coupon (% per annum) for NCD Holders in Category I, II, III and IV Investors
NA
10.50%
NA
10.03%
11.00%
NA
10.49%
Effective Yield (per annum) for NCD Holders in Category I, II, III and IV Investors
10.00%
10.49%
10.50%
10.50%
10.99%
11.00%
11.00%
Mode of Interest Payment
Through various modes available
Amount (₹ / NCD) on Maturity for NCD Holders in Category I, II, III and IV Investors
1,101.44
1,000
1,221.36
1,000
1,000
1,368.05
1000
Maturity / Redemption Date (Years from the Deemed Date of Allotment)
 
370
Days
24
Months
24
Months
24
Months
36
Months
36
Months
36
Months
Put And Call Option
Not Applicable
**The Company shall allocate and allot Series II NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.

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Place your bid in three simple steps:

1

Key in Basic Details

2

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3

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How to invest in the
DHANI LOANS AND SERVICES 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. 4,529.04 Crs

GNPA

9.43%

NPA

2.28%

  • DHANI LOANS AND SERVICES LIMITED
    DHANI LOANS AND SERVICES LIMITED, is a non-deposit taking systemically important NBFC registered with the RBI and a 100% subsidiary of Dhani Services Limited (formerly Indiabulls Ventures Limited), a listed Indian company. It provides transaction finance to its customers through an array of product offerings on the Dhani App and also provide personal loans, secured and unsecured business loans to individual and corporates.
  • Products
    1. Secured MSME loans.
    2. Unsecured MSME loans.
    3. Self-employed and salaried personal loans.
  • Subsidiaries
    Transerv Limited (formerly known as Transerv Private Limited) (Transerv):
    Transerv has been authorized by the RBI under the Payment and Settlement Systems Act, 2007, as amended, to issue and operate semi-closed prepaid payment instruments, pursuant to which Transerv operates a wallet service under the brand Dhani Pay. It is also authorized to issue digital and physical Rupay Cards for its customers.

    Indiabulls Investment Advisors Limited (IIAL):
    IIAL is engaged in marketing of non-discretionary wealth management products.

    Indiabulls Distribution Service Limited (IDSL):
    IDSL is engaged in marketing of non-discretionary wealth management products.

    Indiabulls Alternate Investments Limited (`IAIL`):
    IAIL is engaged primarily in the business of investment management, marketing, fund-raising, advising and administration of SEBI registered alternative investment funds. EFSL, through its subsidiaries, offers its customers a diversified financial services platform that provides various secured corporate loan products, and retail loan products, such as:
    1. Residential mortgages.
    2. SME financing.
    3. Loans against the property.
    4. Asset management.
    5. Asset reconstruction.
    6. Life insurance.
    7. General insurance.
  • Experienced promoters backed by reputed board members
    DLSLs promoter is Dhani Services Limited (formerly Indiabulls Ventures Limited) (`DSL`). Mr. Pinank Jayant Shah, aged 41 years, is a Whole-time Director on the Board and Chief Executive Officer of the Company. He holds a bachelors degree in commerce from Mumbai University and a masters degree in management studies(Finance) from Jamnalal Bajaj Institute of Management Studies. He has over 18 years of experience in retail lending, corporate lending and fund-raising. He is also one of the Executive Director of the parent company DSL. All the remaining board members also well qualified and have vast experience in their respective fields and contribute significantly to the overall growth of the Company. The company shall benefit from the strong experience of its professional management team, which will enable them to scale up its operations while managing the risks inherent in this type of business.
  • Comfortable capitalization and strong resource-raising ability
    DLSL has comfortable capitalization, primarily supported by steady capital infusion from the promoter group. The Company`s Tangible Net Worth stood at INR 4263.37 Crore as at H1-FY21, as against INR 4183.52 Crore as at March 31, 2020. DLSL has been able to obtain continuous funding support from its promoters as well as investors. During the six months ended 30-Sep-2020, the Company has issued & allotted NCDs (privately placed) worth INR 500 Crore. Considering the scale of operations as on March 31, 2020, the company is well capitalized with a CAR (%) of 58.92%. Also, it has adequately matched asset liability profile as on September 30, 2020.
  • Strong linkage & support from the Promoters
    Dhani Loans & Services Limited is a wholly-owned subsidiary of Dhani Services Limited (DSL) (Formerly Indiabulls Ventures Limited). Dhani Services Ltd. is a consumer business that operates through its app Dhani and provides digital healthcare and digital transactional finance to its customers. The equity shares of DSL are listed on NSE and BSE, and its Global Depository Receipts are listed on the Luxembourg Stock Exchange. DSL has raised multiple rounds of capital through placement of its equity share to specialist tech enabled investors. The last round of such capital was a raise of 80 mn USD in Sep/Oct 2020. During FY19, the Holding Company (DSL) infused equity capital of INR 2,302.75 Crore into DLSL.
  • Improved Gearing parameters
    The Overall Gearing ratio has improved significantly from 1.75x as at FY19 to 1.14x as at FY20 & further to 0.94x as at half year ended Sep-20, as the borrowings reduced over the years.
  • Improved operating income parameters
    The Company interest income has increased by almost 20% in FY20 from FY19. The Net Interest margin (NIM) has seen improvement given the increase in Net Interest Income while having a moderate level of loan book as on March 31, 2020. The NIM was 12.51% in FY19, which improved to 13.89% in FY20.
  • Reduction in loan portfolio
    Decline in loan portfolio is due to sale of loan assets by way of Assignment, subsequently resulting in derecognition of such assets from the books of the Company. The gain on sale of loan portfolio through assignment amounted to INR 616.69 Crore in FY20.

    The Company has also securitized its loan assets to unrelated entities. These loan assets are not derecognized and proceeds received are presented as other financial liability. The own book portfolio reduced from INR 10,633 Crore (AUM - INR 11,228 Crore) as at FY19 to INR 4,710 (AUM - INR 9,626 Crore) as at FY20
  • Moderate Asset Quality
    The Gross NPA increased in percentage terms to 1.93% in FY20 when compared to 0.80% in FY19, while the Net NPA levels stood at 0.74% in FY20 and 0.25% in FY19. This is largely due to the reduction in the portfolio size. The ability to grow its loan book while maintaining low delinquency levels remains to be seen. Given that the portfolio has grown aggressively only post lockdown (i.e. May 2020), the portfolio has not yet seen one complete cycle. The companys ability to manage the asset quality while growing its portfolio is a key rating sensitivity.
  • Impact of COVID-19 global pandemic
    COVID-19, a global pandemic, has contributed to a significant decline and volatility in global & Indian markets and a significant decrease in economic activity. The Companys businesses are expected to be impacted by lower lending opportunities and decline in collection efficiencies.

    However, the Companys capital & liquidity position remains strong. The Overall Gearing ratio improved from 1.14x as at Mar-20 to 0.94x as at Sep-20. Pursuant to RBI`s circular, the Company had extended the moratorium to its borrowers in accordance to their board approved policies. Around 28% of the loans were under moratorium. Collection Efficiency has also started improving post COVID-19. The company expects only around 5% of the loans to come under restructuring.

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