Indiabulls Commercial Credit Limited NCD opens for subscription from 03 April 2023. the company aims for a base issue size of ₹200 Crores.
Indiabulls Commercial Credit Limited
Incorporated in 2006, Indiabulls Commercial Credit is a non-deposit-taking NBFC registered with the RBI and a 100% subsidiary of IHFL, a listed housing finance company. It’s also a notified financial institution under the SARFAESI Act.
The company predominantly offers long-term mortgage loans, which comprise (a) retail mortgage loans to self-employed individuals, proprietorships, and small businesses and (b) corporate mortgage loans to developers of residential projects. As of 31 March 2022, its loan book was ₹ 10,950.3 crores, 74% of which comprised mortgage loans. Its target client base comprises salaried and self-employed individuals as well as small and medium-sized enterprises.
Indiabulls Commercial Credit offers mortgage loans to real estate developers in India in the form of lease rental discounting for commercial premises and construction finance. Personal loans, as a product line of its business, have been discontinued and its vintage book is in run-down mode. As of 31 December 2022, the company had 36 branches spread across India, out of which 29 premises are its parent branches. Indiabulls Commercial Credit borrowings as of 31 December 2022, 31 March 2022, and 31 March 2021, amounted to ₹ 7,434.30 crores, ₹ 7,563.21 crores, and ₹ 7,823.05 crores respectively.
Objectives of the Issue
- For the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company;
- General corporate purposes.
Indiabulls Commercial Credit NCD details
| Issue Open | Apr 3, 2023 – Apr 19, 2023 |
| Security Name | Indiabulls Commercial Credit Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 200.00 Crores |
| Issue Size (Shelf) | Rs 1,000.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE, NSE |
| Credit Rating | CRISIL AA/Stable by CRISIL Ratings Limited and [ICRA]AA (Stable) by ICRA Limited. |
| Tenor | 24, 36, and 60 Months |
| Series | Series I to VIII |
| Payment Frequency | Annual, Cumulative, and Monthly |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustees | BEACON TRUSTEESHIP LIMITED |
Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 24 months | Annual | 10.0% | 9.98% | ₹ 1,000 |
| Series 2 | 24 months | Monthly | 9.57% | 9.99% | ₹ 1,000 |
| Series 3 | 24 months | Cumulative | NA | 10.0% | ₹ 1,201.55 |
| Series 4 | 36 months | Annual | 10.25% | 10.23% | ₹ 1,000 |
| Series 5 | 36 months | Monthly | 9.80% | 10.24% | ₹ 1,000 |
| Series 6 | 36 months | Cumulative | NA | 10.25% | ₹ 1,322.30 |
| Series 7 | 60 months | Annual | 10.50% | 10.49% | ₹ 1,000 |
| Series 8 | 60 months | Monthly | 10.03% | 10.50% | ₹ 1,000 |
NCD Rating
The NCDs proposed to be issued under this Issue have been rated “CRISIL AA/Stable” (pronounced as CRISIL double A rating with stable outlook) by CRISIL Ratings and [ICRA]AA (Stable) (pronounced as ICRA double A rating with a stable outlook) by ICRA Limited. Instruments with this rating are considered to have a high degree of safety.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax | Net Worth |
|---|---|---|---|---|
| 31-Mar-20 | 16,387.30 | 2,191.28 | 19.81 | 4,406.95 |
| 31-Mar-21 | 15,873.26 | 1,632.94 | 139.04 | 4,553.20 |
| 31-Mar-22 | 13,143.65 | 1,841.88 | 508.22 | 5,064.84 |
NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 300,000 |
| Non-Institutional | 100,000 |
| HNI | 300,000 |
| Retail | 300,000 |
| Total NCD’s | 1,000,000 |
Company Promoters
- Indiabulls Housing Finance Limited
NCD Lead Manager
- Edelweiss Financial Services Ltd
- Elara Capital (India) Private
- Trust Investment Advisors Private Limited
Indiabulls Commercial Credit NCD Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower – B, Plot 31 & 32, Gachibowli,
Financial District, Nanakramguda, Serilingampally,
Hyderabad – 500 032, Telangana
Phone: +91 40 6716 2222
Email: iccl.ncdipo@kfintech.com
Website: www.kfintech.com
Indiabulls Commercial Credit Contact Details
INDIABULLS COMMERCIAL CREDIT LIMITED
One International Centre, Tower I,
18th Floor, Senapati Bapat Marg,
Elphinstone Road, Mumbai – 400 013
Phone: +91 22 6189 1400
Email: helpdesk@indiabulls.com
Website: www.indiabullscommercialcredit.com
Final Thoughts
Non-Convertible Debentures (NCD) are a better investment option for those who are looking for a diversified portfolio. investing in Indiabulls Commercial Credit Limited NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
