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Indiabulls Housing Finance Tranche III NCD: Everything you need to know

25 Oct 2023 , 02:00 PM

Indiabulls Housing Finance Limited is a prominent player in the mortgage lending sector. It operates as a non-deposit-taking housing finance company (HFC) and is duly registered with the National Housing Bank (NHB). As one of the largest housing finance companies in India, Indiabulls Housing Finance Limited holds a significant position within the Indiabulls Group, serving as its flagship company. The company specializes in offering a range of financial services, with a primary focus on providing housing loans and loans against property.

The company is launching a debt offer, and the subscription period for this offer will be from October 20 to November 03, 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. It has also allotted 10% to non-institutional investors.

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 Monthly, Annual and Cumulative. 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%

9.65%

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 1,202.60

Rs 1,327.75

Rs 1,000.00

RHP:

https://www.indiabullshomeloans.com/uploads/news/project-lotus-4-tranche-iii-prospectus-0804296001697259572.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 Tranche III 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 Limited is debenture trustee to the same.

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