Opening Date
5 Jan 2023
Closing Date
27 Jan 2023
Yield
UP TO 10.30%
Tenure
UP TO 60 MONTHS
Ongoing IPO
Opening Date
5 Jan 2023
Closing Date
27 Jan 2023
Time to close
Yield
UP TO 10.30%
Tenure
UP TO 60 MONTHS
| Issue Size (Including Green Shoe Option) | 200 | ||
| Face Value | 1000 | ||
| Coupon | UP TO 10.30% | ||
| Minimum Number of Bonds | 10 | ||
| Lot Size (Multiplier) | 1 | ||
| Allotment Date (Tentative) | 2 Feb 2023 | ||
| Listing Date (Tentative) | 6 Feb 2023 | ||
| Exchange Bid Time (24 Hours) | 10:00 to 17:00 | ||
Documents attached
*Allotment on first come first serve basis
Series | I | II | III | IV | V | VI | VII | VIII |
Nature Of NCDs | Secured, redeemable, non-convertible debentures | |||||||
Who Can Apply | Everyone | |||||||
Tenure | 24 Months | 24 Months | 24 Months | 36 Months | 36 Months | 36 Months | 60 Months | 60 Months |
Frequency of Interest payment | YEARLY | CUMULATIVE | MONTHLY | YEARLY | CUMULATIVE | MONTHLY | YEARLY | MONTHLY |
Best Coupon Rate (% p.a.) for: | ||||||||
Category 1 | 9.40 % | -N.A.- | 9.05 % | 9.55 % | -N.A.- | 9.16 % | 9.80 % | 9.40 % |
Category 2 | 9.40 % | -N.A.- | 9.05 % | 9.55 % | -N.A.- | 9.16 % | 9.80 % | 9.40 % |
Category 3 | 9.80 % | -N.A.- | 9.40 % | 10.05 % | -N.A.- | 9.61 % | 10.30 % | 9.85 % |
Category 4 | 9.80 % | -N.A.- | 9.40 % | 10.05 % | -N.A.- | 9.61 % | 10.30 % | 9.85 % |
Effective Yield (% p.a.) for: | ||||||||
Category 1 | 9.39 % | 9.40 % | 9.43 % | 9.54 % | 9.55 % | 9.54 % | 9.79 % | 9.81 % |
Category 2 | 9.39 % | 9.40 % | 9.43 % | 9.54 % | 9.55 % | 9.54 % | 9.79 % | 9.81 % |
Category 3 | 9.79 % | 9.80 % | 9.80 % | 10.04 % | 10.05 % | 10.04 % | 10.29 % | 10.30 % |
Category 4 | 9.79 % | 9.80 % | 9.80 % | 10.04 % | 10.05 % | 10.04 % | 10.29 % | 10.30 % |
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BondsIndia is an online platform for fixed-income securities such as IPOs, bonds, 54EC bonds, and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, expert advice, and keeping a close watch on the market sentiment. BondsIndia brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with competitive price before anyone else.
BondsIndia ditches the traditional ways of investing by offering a Technology based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose BondsIndia for its sleek interface, fail-safe communication and step-by-step guide to ensure a well-placed bid. You can apply for Edelweiss Financial Services Limited IPO on BondsIndia's website.
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Application process on BondsIndia platform is simple and seamless.
Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with BondsIndia.
RS 13,730 Crores
2.1%
1.4%
Indiabulls Commercial Credit Ltd. IBCCL, incorporated in 2006, is a wholly owned subsidiary of Indiabulls Housing Finance Ltd. IBHFL and is classified as a Non Deposit taking Systematically Important Non-Banking Financial Company. IBCCL with strong parental support has considerable expertise in mortgage based financing. SME loans, that IBCCL and IBHFL underwrite are in the lowest risk segment where loans are given out to small businesses. IBCCL emphasizes on self occupied residential properties for collateral, appraising loans which are verified as per cash flow; and most importantly, loans meant for productive business deployment which has to be demonstrated at the time of loan appraisal all of which is aimed to help small business owners further their business plans.
At an operational level, although IBHFL and IBCCL operate separately, IBCCL being a wholly owned subsidiary of IBHFL enjoys the facilities and expertise of the consolidated entity, thus giving IBCCL the benefit of strong business processes, the expertise of business personnel, robust underwriting procedures and a prudent risk management approach of the parent IBHFL. IBCCL enjoys a comfortable capital position as its capital adequacy stands at 41.36% as of Jun 16. These high capital levels afford substantial operational leverage. This also signifies the confidence that the management has placed on IBCCL as a critical subsidiary for IBHFL.
Strong capitalisation with healthy cover for asset side risks
Capitalisation is marked by sizeable networth of Rs 16,727 crore as on June 30, 2022, supported by healthy internal accruals. Accruals of Rs 1,988 crore from sale of bulk of its investment in OakNorth Bank in fiscal 2021 also contributed to the strengthening of capital position. Networth coverage for net non-performing assets (NPAs) was also comfortable at around 13.4 times as on June 30, 2022. Consolidated Tier-1 capital adequacy ratio (CAR) was healthy at 27.5% as on June 30, 2022, as was total CAR at 34%. Consolidated on-book gearing was comfortable at 2.8 times as on June 30, 2022 (3.2 times as on March 31, 2022). Given the strong liquidity that IBHFL maintains on a steady-state basis, net gearing was 2.5 times as on March 31, 2022 .
The company has demonstrated strong ability to raise capital including the Rs 683 crore equity raised through qualified institutional placement in fiscal 2021 and Rs 293 crore through stake sale in Oaknorth Bank in fiscal 2022. Strong capitalisation should continue to support the companys overall financial risk profile over the medium term.
Comfortable asset quality in retail segments
IBHFL reported overall gross NPAs of 3.0% as on June 30, 2022 compared to 3.2% as on March 31, 2022 . The uptick in fiscal 2022 has been due to higher delinquencies in the housing loan and loan against property LAP segments on account of the second wave of Covid-19 coupled with de-growth in AUM. Nevertheless, asset quality has improved in Q1FY23 and remains comfortable in these segments with gross NPAs at 1.4% and 2.5%, respectively. The extent of one-time debt restructuring (OTR) under the Covid-19 relief scheme has been also limited; book restructured under OTR 1.0 and 2.0 was Rs 155 crore as on March 31, 2022.
Sizeable presence in the retail mortgage finance segment
IBHFL total AUM stood at Rs 73,047 crore as on June 30, 2022. The share of housing loans within the overall AUM continues to increase and was at 71% as on June 30, 2022 as compared to 50% as on March 31, 2015. The companys LAP portfolio accounted for 17% of the overall AUM as on June 30, 2022, with remaining 12% being towards commercial credit. The proportion of housing loans and LAP is expected to increase further from the current levels over the medium term.
Susceptibility to asset quality risks arising from the commercial real estate portfolio
Asset quality risks arising from a sizeable large ticket commercial credit portfolio of Rs 9,065 crore as on June 30, 2022 persist, and could impact the companys portfolio performance. Given the chunkiness of loans average ticket size of Rs 150 crore, even a few large accounts experiencing stress could impact asset quality.$Under the Covid-19 restructuring scheme announced by the RBI dated August 6, 2020 and May 5, 2021, the company restructured a very small portion of its AUM amounting to 0.26% as on March 31, 2022. Asset quality in commercial credit as well as LAP remain vulnerable given the macro environment and will be monitored closely.
Successful transition to new business model to be established though IBHFL has demonstrated strong execution capabilities in the past
IBHFL has started working towards this new model and has entered into a co origination agreement with six banks and one HFC. The disbursements amounting to Rs 4,067 crore were done in fiscal 2022 and Q1FY23 under these agreements. However, the managementu2019s ability to increase the disbursement pace, establish tie ups with multiple banks and successfully scale up this model, while maintaining healthy profitability and asset quality is to be witnessed, though the company has demonstrated good execution capabilities in scaling up businesses in the past.
While earnings are expected to decline from levels seen in recent years, it will be supported by income from co origination, off balance sheet portfolio, and from spread on sold down loans. Further, this will be commensurate with the more granular, lower risk portfolio, which will be the focus as part of the new business model. In recent times, earnings were impacted on account of decline in AUM, however improved in fiscal 2022 due to lower credit cost. Overall, IBHFLs return on assets RoA improved to 1.3% during fiscal 2022 and 1.5% in quarter ended June 30, 2022, from 1.2% for fiscal 2021.
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