Indiabulls Housing Finance Limited (IHFL) is all set to raise Rs 200 crore through a non-convertible debenture (NCD) issue. The issue will open for subscription on September 6, 2023 and close on September 20, 2023.
The NCDs will be issued in two tranches:
- Tranche 1: Rs 100 crore, 10.75% NCDs with a tenure of 36 months
- Tranche 2: Rs 100 crore, 10.74% NCDs with a tenure of 60 months
The minimum application amount is Rs 10,000 (10 NCDs of Rs 1,000 each) and in multiples of Rs 1,000 thereafter. The NCDs will be listed on the BSE and NSE.
The proceeds from the NCD issue will be used for general corporate purposes, including funding of working capital requirements and repayment of certain borrowings.
IHFL is a leading housing finance company in India. It has a pan-India presence with over 217 branches. The company has a strong track record of financial performance and has been rated 'A' by CRISIL.
The NCD issue is open to all investors, including retail investors, high net worth individuals, and institutional investors. The NCDs are rated 'A' by CRISIL.
The tentative allotment date is September 26, 2023 and the tentative listing date is September 29, 2023.
Investors who are interested in subscribing to the NCD issue can do so through their respective stockbrokers.
Key Highlights of the Indiabulls Housing Finance NCD Issue
- Issue size: Rs 200 crore
- Face value: Rs 1,000
- Interest rate: 10.75% (for 36 months) and 10.74% (for 60 months)
- Tenure: 36 months and 60 months
- Minimum application amount: Rs 10,000
- Listing date: Tentative: September 29, 2023
Risks Associated with the Indiabulls Housing Finance NCD Issue
- The NCDs are rated 'A' by CRISIL, which is a medium grade rating. This means that there is a moderate risk of default on the NCDs.
- The NCDs are illiquid, which means that they may be difficult to sell in the secondary market.
- The NCDs are subject to interest rate risk, which means that their value will go down if interest rates rise.
Conclusion
The Indiabulls Housing Finance NCD issue is a good opportunity for investors to earn a fixed income. However, investors should be aware of the risks associated with the issue before investing.
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