Indiabulls Housing Finance Limited announces ₹ 1,000 crore Public Issue of Secured and/or Unsecured Redeemable Non-Convertible Debentures (NCDs)
· Coupon Rate of up to 9.75% per annum*
· Security cover of 1.25 times on the principal amount and interest thereon
· Tranche I Issue rated as ‘CRISIL AA/Stable (double A: Stable) by CRISIL Ratings Limited and BWR AA+/Negative (double A plus/Negative) by Brickworks Ratings Pvt Ltd
· Tranche I Issue opens on September 06, 2021 and closes on September 20, 2021**
· Trading in dematerialized form only
· Allotment on first -come- first-serve-basis
· The NCDs are proposed to be listed on BSE and NSE.
Chennai, 03 September, 2021: Indiabulls Housing Finance Limited, a housing finance company regulated by the Reserve Bank of India, has announced the public issue of secured/ and or unsecured, redeemable, non-convertible debentures of the face value of Rs. 1,000 each. The Tranche I Issue opens on September 06, 2021 and closes on September 20, 2021.
The Tranche I Issue has a base issue size of Rs. 200 crores with a green shoe option up to Rs. 800 crores, aggregating up to Rs. 1,000 crores (“Tranche I Issue”). The Tranche I Issue offers various options for subscription with coupon rates ranging from 8.05% to 9.75% per annum. There are 10 Series of NCDs carrying fixed coupon and having tenures ranging 24 months, 36 months, 60 months and 87 months with annual, monthly and cumulative option.
The NCDs are proposed to be listed on BSE and NSE (collectively, “Stock Exchanges”) with BSE as the Designated Stock Exchange for the Issue. The NCDs have been rated CRISIL AA/Stable by CRISIL Ratings Limited and BWR AA+ / Negative by Brickwork Ratings India Private Limited.
An additional incentive maximum of 0.25% p.a. will be offered for Category III (HNI) and Category IV (Retail) Investors in the proposed Issue, who are also holders of NCD(s)/ Bond(s) previously issued by the Company, and/ or its Subsidiaries as the case may be, and/or are equity shareholder(s) of Indiabulls Housing Finance Limited as the case may be on the deemed date of allotment.
The Lead Managers to the issue are Edelweiss Financial Services Limited, IIFL Securities Limited and Trust Investment Advisors Private Limited.
At least 75% of the funds raised through this Tranche I Issue will be used for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and the balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount raised in the Tranche I Issue. The unsecured NCDs are in the nature of subordinated debt and will be eligible for Tier II capital.
About Indiabulls Housing Finance Limited (IBHFL):
Indiabulls Housing Finance Ltd. (IBHFL) is one of India’s largest housing finance companies (HFCs), regulated by the Reserve Bank of India (RBI). IBHFL is rated ‘AA’ by leading rating agencies including CRISIL, ICRA and CARE Ratings and at ‘AA+’ by Brickwork Ratings.
The company offers mortgage-backed housing loans to individuals and mortgage-backed business loans to small business owners and MSMEs and has assets under management of Rs. 79,213 crore with more than 1 million happy customers as of 30th June 2021.
*For further details refer to section titled “Issue Related Information” on page 79 of the Tranche I Prospectus dated September 1, 2021. Allotment in the public issue of debt securities should be made on the basis of date of upload of each application into the electronic book of the stock exchange. However, on the date of oversubscription, the allotments should be made to the applicants on proportionate basis.
**The Tranche I Issue shall remain open for subscription on Working Days from 10 a.m. to 5 p.m. (Indian Standard Time) during the period indicated above, except that the Issue may close on such earlier date or extended date as may be decided by the Board of Directors of our Company or the Bond Issue Committee, subject to relevant approvals. In the event of an early closure or extension of the Issue, our Company shall ensure that notice of the same is provided to the prospective investors through an advertisement in a daily national newspaper with wide circulation on or before such earlier or initial date of Tranche I Issue closure. On the Tranche I Issue Closing Date, the Application Forms will be accepted only between 10 a.m. and 3 p.m. (Indian Standard Time) and uploaded until 5 p.m. or such extended time as may be permitted by the Stock Exchange. For further details please refer to our section titled “Issue Related Information” on page 79 of the Tranche I Prospectus.
Capitalised terms not defined herein shall have the same meaning as assigned to such terms in the Shelf Prospectus dated September 1, 2021 and Tranche I Prospectus dated September 1, 2021.