Indiabulls Housing launches tranche II of NCD issue, offers up to 9.55%

NEW DELHI: Indiabulls Housing Finance Ltd has launched secured non-convertible debentures (NCDs) of face value of ₹1,000 each. The tranche II issue opened on Monday and will close for subscription on 22 September.

The issue has a base issue size of ₹100 crore with an option to retain oversubscription of up to ₹900 crore, aggregating up to ₹1,000 crore.

The issue offers various series of NCDs for subscription with coupon rates ranging from 8.33% to 9.55% per annum. The NCDs are proposed to be listed on BSE Ltd. and the National Stock Exchange of India (NSE).

According to the non-banking financial company (NBFC), the NCDs have been rated AA with a stable outlook by Crisil Ratings Ltd as well as ICRA Ltd.

The NCDs under the tranche have tenures of 24 months (Series I, II, III), 36 months (Series IV, V, VI), and 60 months (Series VII, VIII).

Effective yield (per annum) for the NCD holders in category I (Institutional Investors) and category II (non-institutional investors) ranges from 8.64% to 9.05% and for category III (high net-worth individual investors) and category IV (retail individual investors) holders ranges from 9.04% to 9.54%.

Interest payment modes for the NCDs are annually, monthly or cumulative as per the series selected by the investors. The amount on maturity for the NCD holders in category I & category II ranges from ₹1,000 to ₹1,288.21 per NCD and for category III and category IV holders ranges from ₹1,000 to ₹1,306.07 per NCD.

The company is also offering an additional incentive of 0.25% to the category III and category IV investors in the tranche who are also holders of NCDs or bond previously issued by the company, and/or its subsidiaries.

The lead managers to the tranche are Edelweiss Financial Services Ltd, A. K. Capital Services Ltd, IIFL Securities Ltd and Trust Investment Advisors Private Ltd. IDBI Trusteeship Services Limited is the Debenture Trustee to the Tranche II Issue.

As at 30 June, consolidated cash and cash equivalents of the company were ₹4,614.55 crore and borrowings (other than debt securities) of ₹31,955.59 crore on the balance sheet.