By using NCDs, Indiabulls Housing Finance could raise up to Rs 1,000 billion.

by Mapping Returns
Indiabulls Housing Finance

Indiabulls Housing Finance: A secured redeemable non-convertible debenture (NCD) with a green shoe option to retain oversubscription up to Rs 900 crore would be issued by the housing financier, totaling Rs 1,000 crore.
The NCDs issue began on December 1 and ends on December 22, 2022. A minimum of 10 NCDs (totaling Rs 10,000) must be purchased by an investor before they can purchase additional NCDs in multiples of 1 NCD (Rs 1,000). It is suggested that the NCDs be listed on the BSE and the NSE. Eight series of bonds with tenors ranging from 24 months to 60 months are offered.

Monthly, yearly, and cumulative interest payments are made on a basis of maturity. The annual coupon for NCDs is between 8.57% and 9.30%, and the annual effective yield is between 8.89% and 9.30%.
The NCDs that have been proposed for issuance under this issue have ratings of “CRISIL AA/Stable” and “[ICRA]AA (Stable)” respectively.

The company will use at least 75% of the cash raised for future lending, financing, and the repayment of principle and interest on its existing borrowings. Up to 25% of the money will be used for general corporate purposes, according to the company.

The National Housing Bank regulates Indiabulls Housing Finance as a housing finance company. The company’s main product lines are mortgage loans and loans secured by real estate. Additionally, it provides mortgage loans in the form of construction financing for the building of residential properties as well as lease rental discounting for commercial buildings to real estate developers in India. The majority of its loan book is made up of mortgages, including those for affordable housing.

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