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IPO

AA

Opening Date

30 Mar 2022

Closing Date

22 Apr 2022

Coupon Rate

Upto 9.25%

Tenure

Upto 60 Months

IPO Details

Issue Size (Including Green Shoe Option) 1000.00 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) 28th April 2022
Listing Date (Tentative) 2nd May 2022
Exchange Bid Time (24 Hours) 10:00 - 17:00

Documents attached

Information Memorandum

 

Bonds India
Product Note

 

Bonds India

*Allotment on first come first serve basis

ISSUE STRUCTURE

Series
I
II
III
IV
V
VI
VII
VIII
Frequency of Interest Paymet
Annual
Cumulative
Monthly
Annual
Cumulative
Monthly
Annual
Monthly
Tenor
24
Months
24
Months
24
Months
36
Months
36
Months
36
Months
60
Months
60
Months
Coupon (%per annum) for NCD Category I & II
8.35%
NA
8.05%
8.50%
NA
8.20%
8.75%
8.43%
Coupon (%per annum) for NCD Holders in Category III & IV
8.75%
NA
8.42%
9.00%
NA
8.66%
9.25%
8.89%
Effective yield (per annum) for NCD Holders in Category I & II
8.34%
8.35%
8.36%
8.49%
8.50%
8.51%
8.74%
8.76%
Effective yield (per annum) for NCD Holders in Category III & IV
8.74%
8.75%
8.75%
8.99%
9.00%
9.01%
9.24%
9.26%
Amount ( Rs / NCD) on Maturity for NCD Holders in Category I & II
₹ 1000
₹ 1,174.25
₹ 1000
₹ 1000
₹ 1,277.60
₹ 1000
₹ 1000
₹ 1000
Amount ( Rs / NCD) on Maturity for NCD Holders in Category III & IV
₹ 1000
₹ 1,182.95
₹ 1000
₹ 1000
₹ 1,295.35
₹ 1000
₹ 1000
₹ 1000

Why choose Bonds India?

Bonds India 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. Bonds India 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 blockchain-based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose Bonds India for its sleek interface, fail-safe communication, and a step-by-step guide to ensure a well-placed bid. You can apply for Indiabulls Housing Finance 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 Bonds India 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 Bonds India.

AUM

Rs. 80741 Crs

GNPA

2.66%

NPA

1.59%

  • Indiabulls Housing Finance Ltd (“IBHFL”) is one of the largest housing finance companies (“HFCs”) in India in terms of AUM. It is a non-deposit-taking HFC registered with the National Housing Board (“NHB”). IBHFL focuses primarily on long-term secured mortgage-backed loans.
  • • Products Offered
  • Housing loans and loans against property - It primarily offers housing loans and loans against property to our target client base of salaried and self-employed individuals and micro, small and medium-sized enterprises (“MSMEs”) and corporates.
  • Mortgage loans to real estate developers in India – It also offers mortgage loans to real estate developers in India in the form of lease rental discounting for commercial premises and construction finance for the construction of residential premises.
  • Subsidiaries

    The subsidiaries of our Company, namely:

    1. Indiabulls Commercial Credit Limited;
    2. Indiabulls Asset Management Company Limited;
    3. Indiabulls Collection Agency Limited;
    4. Ibulls Sales Limited ;
    5. Indiabulls Capital Services Limited;
    6. Indiabulls Advisory Services Limited;
    7. Indiabulls Insurance Advisors Limited;
    8. Indiabulls Trustee Company Limited
    9. Indiabulls Holdings Limited;
    10. Indiabulls Asset Holding Company Limited;
    11. Nilgiri Financial Consultants Limited;
    12. Indiabulls Investment Management Limited (Formerly known as Indiabulls Venture Capital Management Company Limited); and
    13. Indiabulls Asset Management Mauritius (Foreign Company)
  • One of the largest pan-India HFCs with strong financial performance and credit ratings - IBHFL is one of the largest HFCs in India in terms of AUM. Its geographical reach within India across Tier I, Tier II, and Tier III cities enables it to target and grow their customer base. IBHFL offers loans to their target client base of salaried and self-employed individuals and MSMEs. IBHFL’s presence across India allows them to undertake loan processing, appraisal, and management of customer relationships in an efficient and cost-effective manner. Further, it’s a well-capitalized HFC with a strong financial track record.
  • Access to diversified funding sources Over the years - IBHFL has developed a diversified funding base and has established strong relationships with lenders. Its lenders include PSUs and private banks, and other financial institutions. As of December 31, 2021, their consolidated borrowings (other than debt securities) were Rs 31,168.60 crores, consolidated debt securities were Rs 25,531.47 crores and consolidated subordinated liabilities were Rs 4,693.06 crore. IBHFL’s strong financial performance, capitalization levels, and credit ratings give considerable comfort to their lenders and enable them to borrow funds at competitive rates, thereby lowering their overall cost of borrowings. As of December 31, 2021, their company consolidated borrowings (i.e., the sum of debt securities, borrowings (other than debt securities), and subordinated liabilities) were through banks and financial institutions (50.50%), issuances of non-convertible debentures, and other debt instruments, including perpetual and subordinated debt (49.23%) and lease liability (0.27%).
  • Prudent credit and collection policies IBHFL has separate policies tailored for retail loans and for loans to real estate developers. These policies are aimed at supporting the growth of the business by minimizing the risks associated with growth in the loan book. IBHFL also has an experienced collections team which, with their legal team, have enabled them to maintain high collection efficiencies through economic cycles. Their centralized credit analysis processes combined with a dedicated collections team help them maintain the quality and growth of total AUM.
  • Effective use of technology - IBHFL’s e-Home Loans facility is a technological platform that gives their home loan customers access to paperless loans through their computers or mobile devices. With this technology, the entire process of loan origination (from loan application to approval) is managed through computers and mobile devices so there is no need for a branch visit.
  • Expertise in Providing Loans to Self-Employed Individuals and MSMEs - IBHFL primarily provides loans against property to self-employed individuals, proprietorships, and MSMEs and corporates. These loans are secured against the cash-flow of businesses and through mortgages of, among others, business premises and self-occupied residential properties of customers. IBHFL has over 14 years of experience with loans against property (“LAP”), with demonstrated portfolio performance across business cycles including the global financial crisis, demonetization, GST transition as well as the liquidity squeeze of the last three years.
  • Experienced Board of Directors and Senior Management Team - IBHFL’s Board of Directors comprises a diversified mix of professionals, who have experience and expertise in the fields of banking and regulatory affairs, business, legal affairs, and taxation, among others. A number of senior management team members have been with the company since the commencement of the operations.
  • Average asset quality:
    The asset quality has witnessed some stress over the past few quarters with gross non-performing asset (GNPA)and net non-performing asset (NNPA)increasing to 2.66% and 1.59%respectively, as of March 31, 2021. The said ratios deteriorated mainly on account of high slip pages in the non-housing loan book and shrinkage in the asset base. However, IBHFL managed to restrict asset quality from further deterioration with the reduction in slippages to NPA and maintaining healthy collection efficiency levels as of Sep30, 2021. GNPA and NNPA of the Company stood at 2.69% and 1.53%, respectively as of Sep 30, 2021. The management’s continuous focus is to scaled own its corporate loan book which is more vulnerable to the real estate sector risk, contributing ~14%of the total AUM.
  • Subdued profitability levels:
    The Company’s profitability levels were impacted due to falling income levels on the back of shrinkage of loan book, high provisioning due to the impact of COVID-19 pandemic and falling of NIM due to sell down of high-yielding developer loan portfolio coupled with high credit costs as on Sep30,2021. IBHFL reported PAT of Rs.568.03 Crs (ROA & ROE of 1.25% & 7.15%, respectively) as of Sep 30, 2021 compared to Rs.596Crs (ROA & ROE of 1.26% & 7.09%, respectively) as of Sep 30, 2020. BWR believes that its profitability levels are expected to remain subdued in the current financial year owing to restricted AUM growth along with the high cost of borrowings. The ability of IBHFL to scale up its retail loan book under the new business model and raise funds at competitive rates to improve its profitability levels remains a key monitorable.

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