Indiabulls Housing Finance Limited NCD: Details you need to know

11 Dec 2023 , 10:22 AM

Established in 2005, Indiabulls Housing Finance Limited specializes in providing mortgage lending services. As a non-deposit-taking housing finance company (‘HFC’) registered with the National Housing Bank (NHB), it has emerged as one of India’s leading housing finance companies and serves as the flagship entity within the Indiabulls Group.

The core offerings of Indiabulls Housing Finance Limited encompass housing loans and loans against property, catering to a diverse clientele including (i) salaried employees, (ii) self-employed individuals, (iii) micro, small, and medium-sized enterprises (‘MSMEs’), and (iv) corporates. Beyond individual and business customers, the company extends its services to real estate developers in India. This involves providing mortgage loans through innovative solutions such as lease rental discounting for commercial premises and construction finance for the development of residential properties. Indiabulls Housing Finance Limited plays a pivotal role in facilitating the growth and development of the real estate sector in the country.

The company has launched a debt offer, and the subscription period for this offer will be from December 07 to December 20, 2023. 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 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.

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

Indiabulls Housing Finance has allotted 30% each to institutional, HNI and retail investors. Non-institutional investors’ has also allotted 10% of the offer. 

These NCDs have tenures of 24, 36, 60, 84 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 annually. 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

Secured

Secured

Secured

Secured

Secured

Secured

Secured

Secured

Secured

Secured

Secured

Tenor

24 Months

24 Months

24 Months

36 Months

36 Months

36 Months

60 Months

60 Months

84 Months

84 Months

120 Months

120 Months

Coupon (% per Annum)

9.65%

9.25%

NA

9.90%

9.48%

NA

10.15%

9.71%

10.50%

10.03%

10.75%

10.25%

Effective Yield (% per Annum)

9.64%

9.64%

9.65%

9.89%

9.89%

9.90%

10.14%

10.14%

10.49%

10.49%

10.74%

10.74%

Amount on Maturity (In Rs.)

Rs 1,000.00

Rs 1,000.00

Rs 1,202.65

Rs 1,000.00

Rs 1,000.00

Rs 1,327.75

Rs 1,000.00

Rs 1,000.00

Rs 1,000.00

Rs 1,000.00

Rs 1,000.00

Rs 1,000.00

 

RHP:

https://www.indiabullshomeloans.com/uploads/news/project-lotus-4-tranche-iv-prospectus-0082874001701752522.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 is managed by Elara Capital,  Nuvama Wealth Management, and Trust Investment Advisors Private Limited. KFin Technologies Limited is the registrar of NCD and Idbi Trusteeship Services Ltd. is debenture trustee to the same.