Indiabulls Housing Finance Tranche V NCD: Key details to know

3 Mar 2023 , 09:29 AM

Indiabulls Housing Finance Limited (IBHFL) is one of the largest housing finance companies in India and is the flagship company of Indiabulls Group. The company offers Home Loans, Home Renovation Loans, Rural Home Loans, and Home Extension Loans among others. It is coming up with a debt offer which is starting for subscription from March 03 to March 17, 2023. Click here to apply in the Indiabulls Housing Finance Limited NCD. 

The company is raising Rs 100 crore from the issue at a price of Rs 1000 each. Investors need to apply for a minimum of 1 NCD in a lot. The company has received rating of CRISIL AA/Stable by CRISIL Ratings Limited and ICRA AA/ Stable by ICRA Limited.

Indiabulls Housing Finance Limited has reserved 30% quota for institutional investors, 10% for non-institutional investors, 30% for high net-worth investors and 30% for retail investors.

The company will use the net proceeds from the issue for onward lending, financing and repayment of interest and principal amount of borrowings and other general corporate purposes.

These NCDs have tenures of 24 months, 36 months, and 60 months. It offers coupon rates from 9.65% to 9.71% based on the selection of investors. The frequency of interest payments will be Monthly, Quarterly, Annual or Cumulative as per the choice of investors. Allotment of these NCDs will be in dematerialized mode only. Application is to be made through ASBA mode only.

Check the coupon rates of NCDs of Edelweiss Financial Services Limited

	Series 1	Series 2	Series 3	Series 4	Series 5	Series 6	Series 7	Series 8
Frequency of Interest Payment	Annual	Monthly	Cumulative	Annual	Monthly	Cumulative	Annual	Quarterly
Nature	Secured
Tenor	24 months	24 months	24 months	36 months	36 months	36 months	60 months	60 months
Coupon Rate (Retail)	9.65%	9.25%	NA	9.90%	9.48%	NA	10.15%	9.71%
Effective Yield (% per Annum)	9.64%	9.64%	9.65%	9.88%	9.89%	9.90%	10.14%	10.15%
Amount on Maturity	Rs 1000	Rs 1000	Rs 1193.85	Rs 1000	Rs 1000	Rs 1309.70	Rs 1000	Rs 1000

 

RHP:

https://www.akgroup.co.in/docs/IBHFL%20-%20Tranche%20V%20Prospectus%2023%20Feb%202023.pdf

Tax implications:

• Interest on debentures received by resident debenture holders would be subject to tax at the normal rates of tax in accordance with and subject to the provisions of the I.T. Act.
• As per section 2(29AA) read with section 2(42A) of the I.T. Act, a listed debenture is treated as a longterm capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.
• As per section 2(42A) of the I.T. Act, a listed debenture is treated as a short-term capital asset if the same is held for not more than 12 months immediately preceding the date of its transfer.
• In case debentures are held as stock in trade, the income on transfer of debentures would be taxed as business income or loss in accordance with and subject to the provisions of the I.T. Act.
• Income tax is deductible at source on interest on debentures, payable to resident debenture holders at the time of credit/ payment as per the provisions of section 193 of the I.T. Act.

On the financial performance front, for the last three fiscals, Indiabulls Housing Finance Limited has posted a net profit of Rs. 2,165.92 crore (FY20), Rs. 1,201.59 crore (FY21), and Rs. 1,177.74 crore (FY22). For Q3 of FY23 ended on December 31, 2022, it earned a net profit of Rs. 867.08 crore on total revenue of Rs. 6648.66 crore.