Indiabulls Housing’s NCD Issue Offering 10.15% Opens

Indiabulls Housing Finance's Rs 900 crore NCD offering kicks off today.

Non-banking financial company (NBFC) Indiabulls Housing Finance on March 3 launched tranche V of its secured non-convertible debentures (NCDs) issue.

The tranche comprises a base issue size of Rs 100 crore with a choice to recollect oversubscription of up to Rs 800 crore, combining up to Rs 900 crore. The tranche V subject is within the shelf limit of Rs 1,400 crore the corporation is beholding to raise via these NCDs.

The company aims to habit 75% of the funds for forward lending, financing, and refinancing prevailing debts and the rest for wide-ranging corporate purposes.

The latest tranche bids various NCDs for payment, with fluctuating coupon rates from 8.88% to 10.15% per annum. The issue has tenures of 24 months, 36 months and 60 months.

Effective yield (per annum) for the NCD containers in Category I (institutional investors) and Category II (non-institutional investors) ranges from 9.24% to 9.64%. For Category III (high net-worth individual investors) and Category IV (individual retail investors) holders, it ranges from 9.64% to 10.15%.

Interest payment styles for the NCDs are yearly, monthly or cumulative, per the series nominated by the investors.

The company is also proposing an additional inducement of 0.25% to Category III and Category IV investors in the planned Tranche V issue. The NCDs have been regarded as AA with a steady outlook by both CRISIL Scores and ICRA. The smallest application in the NCD issue will be Rs 10,000, having a face value of Rs 1,000 each.

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