NCD - PUBLIC ISSUE NOTE

Size: px

Start display at page:

Download "NCD - PUBLIC ISSUE NOTE"

Marshall Sherman
5 years ago
Views:

1 Public Issue of Secured Redeemable Non-Convertible Debentures by Indiabulls Housing Finance Limited Brief Introduction of the company: It is one of the largest housing finance companies ("HFCs") in India. It is a non-deposit taking HFC registered with the NHB. It is also a notified financial institution under the SARFAESI Act. It focuses primarily on long-term secured mortgage-backed loans. It offers housing loans and loans against property to the target client base of salaried and self-employed individuals and small and medium-sized enterprises. It also offers mortgage loans to real estate developers in India in the form of lease rental discounting for commercial premises and construction finance for the construction of residential premises. The majority of assets under management ("AUM") comprise housing loans, including in the affordable housing segment. For the Fiscal Year 2016, housing loans were disbursed at an average ticket size of Rs. 2.5 million, with an average LTV ratio of 71% (at origination). It holds highest long-term credit ratings of "AAA" (for long-term loans and non-convertible debentures) from CARE and Brickwork Ratings and "AA+" (for non-convertible debentures) from CRISIL and ICRA. The consolidated revenue from operations and consolidated profit after tax grew at a CAGR of 23.8% and 22.3%, respectively, from Fiscal Year 2014 to Fiscal Year Key Strengths: One of the largest HFCs in India with strong financial performance, capitalization and credit ratings. Access to diversified and cost effective funding sources Strong network and pan-india presence and brand Prudent credit and information technology policies and processes leading to improved asset quality Technology advancements aimed at increasing customer accessibility Business Strategies: Continue expansion by focusing on housing loans and affordable housing segment Grow loan book through technological endeavours Leverage financial strength and improved ratings to increase competitiveness, diversify funding mix and reduce funding costs Continue to maintain adequate liquidity Continue to maintain prudent risk management policies for assets under management Expand physical and online networks and leverage digital media Objects of the Issue: 1. For the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company 2. General corporate purposes.

2 Issue details: Issuer/ Borrower Nature of Issue Secured Redeemable Non Convertible Debentures Issue Opening Sep 15, 2016 Issue Closing Sep 23, 2016* Issue Size Credit Rating Seniority Mode of Allotment** Listing Trading Lead Managers Registrar Depositories Debenture Trustee Security Rs Crores with an option to retain over-subscription up to Rs Crores (Shelf Limit) CARE AAA by CARE BWR AAA with stable outlook by BRICKWORK The claims of the NCD Holders shall be superior to the claims of any unsecured creditors of the Company and subject to applicable statutory and/or regulatory requirements, rank pari passu inter se to the claims of other creditors of the Company having the same security. Physical and Demat BSE and NSE The trading of the NCDs on the floor of the Stock Exchanges shall be in dematerialized form only. YES Securities (India) Limited, Edelweiss Financial Services Limited, A. K. Capital Services Limited, Axis Bank Limited, IIFL Holdings Limited, IndusInd Bank Limited, SBI Capital Markets Limited and Trust Investment Advisors Private Limited Karvy Computershare Private Limited NSDL & CDSL IDBI Trusteeship Services Ltd Company will create appropriate security in favour of the Debenture Trustee for the NCD Holders on the assets adequate to ensure 100% asset cover for the NCDs (along with the interest due thereon), which shall be free from any encumbrances Allotted: at the rate of (.%) p.a. Interest on application Money Cheque/ DD Liable to be refunded: at the rate of 6% p.a. Applicable from 3 (three) days from the date of upload of the Application Form on the electronic book of the Stock Exchange, or the date of realization of the Application Amount, whichever is later, up to 1 (one) day prior to the Deemed Date of Allotment, subject to deductions All cheques / bank drafts accompanying the Applications made by eligible Applicants should be crossed A/c Payee only and must be made payable to (.) *Issue may close on such earlier date or extended date as may be decided by the Board/ Committee of Directors, as the case may be **In terms of Regulation 4(2)(d) of the SEBI Debt Regulations, our Company will undertake this public issue of the NCDs in dematerialised form. However, in terms of section 8(1) of the Depositories Act, our Company, at the request of the Investors who wish to hold the NCDs in physical form will fulfil such request. SEBI vide letter no. IMD/DOF-1/AKS/OW/20640/2016 dated July 22, 2016 has granted approval to our Company to give option to those Investors who exercise their option to subscribe in physical form as entitled under section 8 (1) of the Depositories Act. However, trading in NCDs shall be compulsorily in dematerialized form.

3 Investment Details: Series I II III IV V VI VII 29 February, Interest type 2012 Cumulative FIXED FIXED FIXED FIXED FIXED FIXED Frequency of Interest Payment Annual Cumulative Annual Cumulative Monthly Annual Cumulative Minimum Application Rs. 10,000/- (10 NCDs) Face Value/Issue Price of NCDs (` / NCD) Rs. 1000/- Tenor from Deemed Date of Allotment 3 Years 5 Years 10 Years Coupon (%) For NCDs 8.55% N.A 8.75% N.A 8.51% 8.85% N.A annum)category I & Category II Investor(s) 8.55% 8.55% 8.75% 8.75% 8.85% 8.85% 8.85% annum)category III Investor(s) 8.65% 8.65% 8.90% 8.90% 9.00% 9.00% 9.00% annum)category IV Investor(s) 8.70% 8.70% 8.90% 8.90% 9.00% 9.00% 9.00% Redemption Amount (Rs./NCD) For NCD holders in the Category I and the Category II 1,000/ /- 1,000/- 1,521.41/- 1,000/- 1,000/- 2,336.07/- For NCD holders in the Category III 1,000/- Who /- Can Apply? 1,000/- 1,531.93/- 1,000/- 1,000/- 2,368.48/- * For Applicants NCD holders are advised in the to ensure that they have obtained the necessary statutory and/or regulatory permissions/consents/approvals in connection Category IV with applying for, subscribing 1,000/- to, or seeking allotment /- of NCDs pursuant 1,000/- to the 1,531.93/- Issue. 1,000/- 1,000/- 2,368.48/- *Company may allocate series VI NCDs wherein the Applicants have not indicated their choice of the relevant NCD series

4 *Company May allocate series IX NCDs wherein the Applicants have not indicated their choice of the relevant NCD series

5 Category I (20% of Issue Category II (20% of Issue Public financial institutions, scheduled commercial banks, Indian multilateral and bilateral development financial institution which are authorized to invest in the NCDs; Provident funds, pension funds, superannuation funds and gratuity funds, which are authorized to invest in the NCDs; Venture Capital Funds/ Alternative Investment Fund registered with SEBI; Insurance Companies registered with IRDA; State industrial development corporations; Insurance funds set up and managed by the army, navy, or air force of the Union of India; Insurance funds set up and managed by the Department of Posts, the Union of India; National Investment Fund set up by resolution no. F. No. 2/3/2005DDII dated November 23, 2005 of the Government of India published in the Gazette of India; and Mutual Funds. Companies within the meaning of section 2(20) of the Companies Act, 2013; cooperative banks, and societies registered under the applicable laws in India and authorized to invest in the NCDs; Statutory Bodies/Corporations, Regional Rural Banks Public/private charitable/ religious trusts which are authorized to invest in the NCDs; Scientific and/or industrial research organizations, which are authorized to invest in the NCDs; Partnership firms in the name of the partners; Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009); Association of Persons; and Any other incorporated and/ or unincorporated body of persons Category III (30% of Issue Category IV (30% of Issue Resident Indian individuals and Hindu Undivided Families through the Karta applying for an amount aggregating to above Rs. 10 lacs across all series of NCDs Resident Indian individuals and Hindu Undivided Families through the Karta applying for an amount aggregating up to and including Rs.10 lacs across all series of NCDs :: Important Note :: The Applications are to be submitted to the Members of the Syndicate and Trading Members on a timely manner so that the details can be uploaded by the closure of banking hours (5 PM) on to the Stock Exchange platform. Kindly note that in both ASBA & Non-ASBA cases uploading in to the Electronic files of Stock Exchanges is Mandatory and application is liable to be rejected otherwise. Please read the Prospectus of this issue carefully before investing in the same. Application forms will be available on Disclaimer The information and views presented in this report are prepared by Karvy Stock Broking Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Stock Broking nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. :: Research Team :: PF/NCDN/ /04 Ankit Choradia ankit.choradia@karvy.com Direct Ph:

ECL Finance Limited. 13-Dec Jan Public Issue of Secured Redeemable Non-Convertible Debentures. Issue Opens on.

ECL Finance Limited. 13-Dec Jan Public Issue of Secured Redeemable Non-Convertible Debentures. Issue Opens on. Public Issue of Secured Redeemable Non-Convertible Debentures ECL Finance Limited -------------------------------------------------------------------------------------------------------------------- Issue