Headquartered in New Delhi, 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 Rs. 1,000 each ("NCDs"). The Tranche II Issue opens on Monday, September 05, 2022 and closes on Thursday, September 22, 2022.
The Tranche II Issue has a base issue size of Rs. 100 crores with an option to retain oversubscription up to Rs. 900 crores, aggregating up to Rs. 1,000 crores ("Tranche II Issue"). The Tranche II Issue offers various series of NCDs for subscription with coupon rates ranging from 8.33% to 9.55% per annum. 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 II 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 II 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 8.64% to 9.05% and for Category III (High Net-worth Individual Investors) and Category IV (Retail Individual Investors) holders ranges from 9.04% to 9.54%. 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 Rs. 1,000 to Rs. 1,288.21 per NCD and for Category III (High Net-worth Individual Investors) and Category IV (Retail Individual Investors) holders ranges from Rs. 1,000 to Rs. 1,306.07 per NCD.
The Company is also offering an additional incentive of 0.25% to the Category III and Category IV Investors in the proposed Tranche II Issue who are also holders of NCD(s)/bond(s) previously issued by 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 III, Series IV, Series VI, Series VII and/or Series VIII, provided the NCDs issued under the proposed Tranche II Issue are held by the investors on the relevant Record Date applicable for payment of respective coupons, in respect of Series I, Series III, Series IV, Series VI, Series VII and Series VIII.
The Lead Managers to the Tranche II 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 II Issue.
Net proceeds of the Tranche II Issue, after meeting the expenditures of and related to the Tranche II Issue, shall be utilised for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and general corporate purposes.
As at June 30, 2022, consolidated cash and cash equivalents of the Company were Rs. 4,614.55 crores and Borrowings (other than Debt Securities) of Rs. 31,955.59 crores on balance sheet.
The terms of each series of NCDs offered under the Tranche II Issue are set out below: