Indiabulls Commercial Credit NCD opens for subscription from 05 January 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 INR 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.
Objectives of the Issue
- For the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company; and
- General corporate purposes.
Indiabulls Commercial Credit NCD January 2023 Details
| Issue Open | Jan 5, 2023 – Jan 27, 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 |
Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 24 months | Annual | 9.80% | 9.79% | INR 1,000 |
| Series 2 | 24 months | Cumulative | NA | 9.80% | INR 1,197.15 |
| Series 3 | 24 months | Monthly | 9.40% | 9.80% | INR 1,000 |
| Series 4 | 36 months | Annual | 10.05% | 10.04% | INR 1,000 |
| Series 5 | 36 months | Cumulative | NA | 10.05% | INR 1,315.10 |
| Series 6 | 36 months | Monthly | 9.61% | 10.04% | INR 1,000 |
| Series 7 | 60 months | Annual | 10.30% | 10.29% | INR 1,000 |
| Series 8 | 60 months | Monthly | 9.85% | 10.30% | INR 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 | 16387.3 | 2191.28 | 19.81 | 4406.95 |
| 31-Mar-21 | 15873.26 | 1632.94 | 139.04 | 4553.2 |
| 31-Mar-22 | 13143.65 | 1841.88 | 508.22 | 5064.84 |
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 Contact Details
INDIABULLS COMMERCIAL CREDIT LIMITED
One International Centre, Tower I,
18th Floor, Senapati Bapat Marg,
Elphinstone Road, Mumbai – 400 013, Maharashtra
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 NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
