Indiabulls Housing Finance Limited NCD: Everything you need to know

13 May 2024 , 01:36 PM

Established in 2005, Indiabulls Housing Finance Limited specializes in providing mortgage finance services. As a non-deposit-taking housing finance company (“HFC”) registered with the National Housing Bank (NHB), it operates as a key player in India’s housing finance sector.

Being one of India’s largest housing finance companies, Indiabulls Housing Finance Limited serves as the flagship entity of the Indiabulls Group. The company cate ₹to a diverse clientele, offering home loans and loans against property to salaried individuals, self-employed individuals, micro, small and medium enterprises (“MSMEs”), and corporates. Additionally, it extends mortgage loans to real estate developers in India, facilitating lease rental discounting for commercial premises and providing construction loans for residential buildings.

The company has launched its debt offer, and the subscription period for this offer will be from May 13 to May 27, 2024. Click here to apply in the Indiabulls Housing Finance NCD.

The company is raising ₹100 Crore from the issue at a price of ₹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 towards onward lending, financing, and repayment 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. Non-institutional investors’ has allotted 10% of the offer.

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 annually or monthly. 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:

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

Secured

Secured

Secured

Secured

Secured

Secured

Secured

Secured

Secured

Secured

Secured

Tenor

24 Months

24 Months

24 Months

36 Months

36 Months

36 Months

60 Months

60 Months

84 Months

84 Months

120 Months

120 Months

Coupon (% per Annum)

9.65%

9.25%

NA

9.90%

9.48%

NA

10.15%

9.71%

10.50%

10.03%

10.75%

10.25%

Effective Yield (% per Annum)

9.65%

9.65%

9.65%

9.90%

9.90%

9.90%

10.15%

10.15%

10.50%

10.50%

10.74%

10.75%

Amount on Maturity

₹1,000.00

₹1,000.00

₹1,202.32

₹1,000.00

₹1,000.00

₹1,327.38

₹1,000.00

₹1,000.00

₹1,000.00

₹1,000.00

₹1,000.00

₹1,000.00

 

RHP:

https://www.indiabullshomeloans.com/uploads/news/indiabulls-tranche-vi-abridged-prospectus-0809741001715326032.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 is managed by Trust Investment Advisors, Elara Capital India and Nuvama Wealth Management Limited. KFin Technologies Limited is the registrar of NCD and Beacon Trusteeship Limited is the debenture trustee to the same.