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Indiabulls Housing Finance Limited NCD: Key details you need to know

8 Sep 2023 , 02:09 PM

Indiabulls Housing Finance Limited (IBHFL) engages in providing mortgage lending services. It is a non-deposit-taking housing finance company (‘HFC’) registered with the NHB. 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 September 6 to September 20. Click here to apply in the Indiabulls Housing Finance Limited NCD.

The company is raising Rs 200 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, 60 months, 84 months and 120 months. It offers coupon rates from 9.65% to 10.25% based on the selection of investors. The frequency of interest payments will be Monthly, 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 Indiabulls Housing Finance Limited

Series 1

Series 2

Series 3

Series 4

Series 5

Series 6

Series 7

Series 8

Series 9

Series 10

Series 11

Series 12

Frequency of Interest Payment

Annual

Monthly

Cumulative

Annual

Monthly

Cumulative

Annual

Monthly

Annual

Monthly

Annual

Monthly

Nature

Secured

Tenor

24 Months

36 Months

60 Months

84 Months

120 Months

Coupon (% per Annum)

9.65%

9.25%

9.90%

9.48%

10.15%

9.71%

10.50%

10.03%

10.75%

10.25%

Effective Yield (% per Annum)

9.64%

9.65%

9.88%

9.89%

9.90%

10.14%

10.49%

10.74%

Amount on Maturity (In Rs.)

Rs 1,000.00

Rs 1,202.65

Rs 1,327.75

Rs 1,000.00

RHP:

https://www.indiabullshomeloans.com/uploads/news/indiabulls-housings-finance-limited-tranche-ii-prospectus-august-31-2023-0616508001693547629.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.

Indiabulls Housing Finance Limited NCD is managed jointly by Nuvama Wealth Management Ltd, Ellara Capital, and Trust Investment Advisors Private Limited. KFin Technologies Limited is the registrar of NCD and IDBI Trusteeship Services Limited is debenture trustee to the same.