Indiabulls Commercial Credit Limited NCD: Key details to know

5 Jan 2023 , 09:41 AM

Indiabulls Commercial Credit Limited (ICCL), a subsidiary of Indiabulls Housing Finance Limited is a non-deposit-taking NBFC. The company offers long-term secured mortgage-backed loans to self-employed individuals, proprietorships, and small businesses and corporate mortgage loans to residential projects developers. It is coming up with a debt offer which is starting for subscription from January 05 to January 27, 2023. Click here to apply in the Indiabulls Commercial Credit 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 10 NCDs in a lot. The company has received rating of CRISIL AA/Stable by CRISIL Ratings Limited and ICRA AA/ Stable by ICRA Limited.

Indiabulls Commercial Credit 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 9.80% to 9.85% 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 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	Cumulative	Monthly	Annual	Cumulative	Monthly	Annual	Monthly
Nature	Secured
Tenor	24 months	24 months	24 months	36 months	36 months	36 months	60 months	60 months
Coupon Rate (Retail)	9.80%	NA	9.40%	10.05%	NA	9.61%	10.30%	9.85%
Effective Yield (% per Annum)	9.79%	9.80%	9.80%	10.04%	10.05%	10.04%	10.29%	10.30%
Amount on Maturity	Rs 1000	Rs 1197.15	Rs 1000	Rs 1000	Rs 1315.10	Rs 1000	Rs 1000	Rs 1000

 

RHP:

https://www.bseindia.com/markets/publicIssues/DisplayIPO.aspx?id=2884&type=DPI&idtype=1&status=L&IPONo=5998&startdt=05/Jan/2023

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 Commercial Credit Limited has posted a net profit of Rs. 19.81 crore (FY20), Rs. 139.04 crore (FY21), and Rs. 508.22 crore (FY22). The sudden boost in its bottom lines for FY21 and FY22 raises eyebrows. For the H1 of FY23, it earned a net profit of Rs. 236.90 crore on a total income of Rs. 937.11 crore.

Indiabulls Commercial Credit Limited NCD is managed jointly by Edelweiss Financial Services Ltd, Elara Capital (India) Pvt Ltd, and Trust Investment Advisors Private Limited. KFin Technologies Limited is the registrar of NCD and Beacon Trusteeship Limited is debenture trustee to the same.