Indiabulls Housing Finance's Rs 1,000-cr public issue of bonds will open tomorrow

Indiabulls Housing Finance is seeking to raise up to Rs 1,000 crore through the public issue of the bonds that will open for subscription on Monday, September 6, 2021. The public issue is of secured/and or unsecured, redeemable, non-convertible debentures of the face value of Rs 1,000 each.

The tranche I issue will open on September 6 and close on September 20, 2021. The tranche I issue has a base issue size of Rs 200 crore with a greenshoe option of up to Rs 800 crore, aggregating up to Rs 1,000 crore.

The company in a regulatory filing at the BSE on September 1, 2021, said, "The Bond Issue Committee of the board of directors of Indiabulls Housing Finance Limited on Wednesday approved the public issue by the Company of secured, redeemable, non-convertible debentures of the face value of Rs1,000 each and/or unsecured, subordinated, redeemable, non-convertible debentures of the face value of Rs 1,000 each for an amount up to Rs 200 crore (Base Issue Size) with an option to retain oversubscription up to Rs 800 crore, aggregating up to Rs 1,000 crore (Tranche I Issue Limit) (Tranche I Issue), which is within the shelf limit of Rs 1,000 crore."

The company said it offers various options for subscriptions with coupon rates ranging from 8.05-9.75 per cent per annum.

Under this, there are 10 series of NCDs carrying fixed coupons and having tenures of 24 months, 36 months, 60 months and 87 months with annual, monthly and cumulative options. "At least 75 per cent of the funds raised through this tranche I issue will be used for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the company," it said.

The balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25 per cent of the amount raised.

The unsecured NCDs are in the nature of subordinated debt and will be eligible for tier-II capital. The NCDs are proposed to be listed on BSE and NSE. They have been rated CRISIL AA/Stable by CRISIL Ratings and BWR AA+/ Negative by Brickwork Ratings.

The housing financier said an additional incentive maximum of 0.25 per cent per annum will be offered for category III (HNI) and category IV (retail) investors in the proposed issue, who are also holders of bonds previously issued by the company, or its subsidiaries.

The equity shareholder of the company will also be eligible for this benefit, as the case may be on the deemed date of allotment, it added.

Edelweiss Financial Services, IIFL Securities and Trust Investment Advisors are the lead managers to the issue.