Indiabulls Housing gains on launching Rs 1,000 crore NCD issue

Indiabulls Housing Finance rose 1.08% to Rs 253.40 after the company announced opening of the public issue of its secured, redeemable, non-convertible debentures aggregating up to Rs 1,000 crore.

In an exchange filing made after market hours yesterday, the housing financier announced the issue of secured, redeemable, non-convertible debentures of the face value of Rs 1,000 each. The issue opened today, 9 December 2021, and it will close on 20 December 2021, with an option of early closure.

The issue has a base issue size of Rs 200 crore with an option to retain oversubscription up to Rs 800 crore, aggregating up to Rs 1,000 crore. The NCDs have been rated 'CRISIL AA/Stable' by CRISIL Ratings and 'BWR AA+' by Brickworks Ratings India.

The NCDs are proposed to be listed on the stock exchanges with BSE as the designated stock exchange for the issue.

The NCDs issued pursuant to the issue have a tenure of 24 months, 36 months, and 60 months.

Effective yield (per annum) for NCD holders in category-I (institutional investors) & category-II (non-institutional investors) ranges from 8.35% to 8.76% and for NCD holders in category-III (HNI investors) and category-IV (retail individual investors) ranges from 8.75% to 9.26%.

The frequency of interest payments is annual, monthly or cumulative as per the choice of investors.

Indiabulls Housing Finance provides home loans and loans to small business owners.

On a consolidated basis, the company reported an 11.4% fall in net profit to Rs 286.34 crore on a 13.5% decline in total income to Rs 2,233 crore in Q2 FY22 over Q2 FY21.

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