Indiabulls Housing Finance’s NCD Tranche IV Issue Opens on Thursday, December 01, 2022

Coupon Rate Up to 9.80% p.a., Effective Yield Up to 9.80% p.m.

• Public issue of secured redeemable non-convertible debentures (“NCDs”) of face value and issue price of Rs. 1,000 each
• The Tranche IV Issue includes a base issue size of Rs. 100 crores with an option to retain oversubscription up to Rs. 900 crores aggregating up to Rs. 1,000 crores (“Tranche IV Issue”)
• NCDs proposed to be issued pursuant to the Tranche IV Issue are rated as “CRISIL AA/Stable” by CRISIL Ratings Limited and “[ICRA]AA (Stable)” by ICRA Limited
• Tenor options: 24 months, 36 months & 60 months with monthly, annual and cumulative coupon Payment Options
• Staggered Redemption Options for 36 months & 60 months; Coupon rate up to 9.80% p.a. and Effective Yield up to 9.80% p.m.^#
• The Tranche IV Issue opens on Thursday, December 01, 2022 and closes on Thursday, December 22, 2022 **
• Allotment on First come First serve basis*
• The NCDs are proposed to be listed on BSE Limited and National Stock Exchange of India Limited. BSE is the designated stock exchange for the Tranche IV Issue.

Mumbai, December 01, 2022: Headquartered in New Delhi, Indiabulls Housing Finance Limited (“Company” or “Issuer”), a non-deposit taking housing finance company registered with the National Housing Bank, has announced the public issue of secured, redeemable, non-convertible debentures of the face value of ₹ 1,000 each (“NCDs”). The Tranche IV Issue opens on Thursday, December 01, 2022 and closes on Thursday, December 22, 2022.

The Tranche IV Issue has a base issue size of ₹ 100 crores with an option to retain oversubscription up to ₹ 900 crores, aggregating up to ₹ 1,000 crores (“Tranche IV Issue”). The Tranche IV Issue offers various series of NCDs for subscription with coupon rates ranging from 8.57% to 9.80% per annum. The NCDs are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India (“NSE” together with BSE, the “Stock Exchanges”) with BSE as the Designated Stock Exchange for the Tranche IV Issue. The NCDs have been rated “CRISIL AA/Stable” by CRISIL Ratings Limited and “[ICRA]AA (Stable)” by ICRA Limited.

The NCDs under the Tranche IV Issue have tenures of 24 months (Series I, II, III), 36 months (Series IV, V, VI), and 60 months (Series VII, VIII). Effective yield (per annum) for the NCD holders in Category I (Institutional Investors) & Category II (Non-Institutional Investors) ranges from 8.89% to 9.30% and for Category III (High Net-worth Individual Investors) and Category IV (Retail Individual Investors) holders ranges from 9.29% to 9.80%. Interest payment modes for the NCDs are annually, monthly or cumulative as per the series selected by the investors. Amount on maturity for the NCD holders in Category I (Institutional Investors) & Category II (Non-Institutional Investors) ranges from ₹ 1,000 to ₹ 1,297.15 per NCD and for Category III (High Net-worth Individual Investors) and Category IV (Retail Individual Investors) ranges from ₹ 1,000 to ₹ 1,315.10 per NCD.  The Tranche IV Issue option for has staggered redemption by face value through annual payments under 36 months (Series IV and Series V) and 60 months (Series VII and Series VIII). 

The Company is also offering an additional incentive of 0.25% to the Category III and Category IV Investors in the proposed Tranche IV Issue who are also holders of NCD(s)/bond(s) previously issued by Company, and/or its Subsidiaries as the case may be, and/or are equity shareholder(s) of Indiabulls Housing Finance Limited as the case may be (“Primary Holder(s)”) on the Deemed Date of Allotment

The Lead Managers to the Tranche IV Issue are Edelweiss Financial Services Limited, A. K. Capital Services Limited, IIFL Securities Limited and Trust Investment Advisors Private Limited. IDBI Trusteeship Services Limited is the Debenture Trustee to the Tranche IV Issue and KFin Technologies Limited is the registrar to the issue.

Net proceeds of the Tranche IV Issue, after meeting the expenditures of and related to the Tranche IV Issue, at least 75% shall be utilised for the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company and up to 25% for general corporate purposes.

As at September 30, 2022, the consolidated cash and cash equivalents of the Company was ₹ 3,941.51 crores and the Borrowings (other than Debt Securities) was ₹ 30,264.10 crores on balance sheet.

The terms of each series of NCDs offered under the Tranche IV Issue are set out below:

*Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.

Principal Redemption Schedule and Redemption Amounts

Set out below is the principal redemption schedule and the redemption amount for the Series IV NCDs, Series V NCDs, Series VII NCDs, and Series VIII NCDs, in relation to which the principal outstanding will be redeemed in a staggered manner.

*from the Deemed Date of Allotment.

Allotments shall be made on date priority basis i.e. a first-come first-serve basis, based on the date of upload of each application in to the electronic book with the Stock Exchanges, in each portion subject to the Allocation Ratio. However, on the date of oversubscription and thereafter, the allotments would be made to the applicants on proportionate basis

^# Applicable for Category III and Category IV Investors for tenure of 60 months. For further details please refer to the Tranche IV Prospectus dated November 25, 2022 read together with the Corrigendum to the Tranche IV Prospectus dated November 29, 2022.

**The Tranche IV Issue shall remain open for subscription on Working Days from 10 a.m. to 5 p.m. during the period indicated in this Tranche IV Prospectus, except that this Tranche IV Issue may close on such earlier date or extended date as may be decided by the Board of Directors of our Company or Securities Issuance Committee thereof. In the event of an early closure or extension of this Tranche IV Issue, our Company shall ensure that notice of the same is provided to the prospective investors through an advertisement on or before such earlier or extended date of this Tranche IV Issue closure in all the newspapers in which the advertisement for opening of this Tranche IV Issue has been given. Application Forms for this Tranche IV Issue will be accepted only from 10:00 a.m. to 5:00 p.m. or such extended time as may be permitted by BSE and NSE, on Working Days, during the Tranche IV Issue Period. On the Tranche IV Issue Closing Date, the Application Forms will be accepted only between 10 a.m. to 3 p.m. (Indian Standard Time) and uploaded until 5 p.m. or such extended time as may be permitted by BSE and NSE. Further, pending mandate requests for bids placed on the last day of bidding will be validated by 5 p.m. (Indian Standard Time) on one Working Day post the Tranche IV Issue Closing Date.

About Indiabulls Housing Finance Limited (IBHFL):

Indiabulls Housing Finance Limited (IBHFL) is a non-deposit taking housing finance company (“HFC”) registered with the NHB. The NCDs proposed to be issued by IBHFL are rated ‘AA’ by rating agencies including CRISIL and ICRA. As of September 30, 2022, it has a network of 164 branches spread across India which gives them a pan-India presence and allows it to interact with and service its customers. Indiabulls’ consolidated revenue from operations stood at ₹ 8,983.31 crores for the fiscal 2022 and consolidated profit for the year was ₹ 1,177.74 crores. For the six months ended September 30, 2022, consolidated revenue from operations and profit for the period was ₹ 4,304.99 crores and ₹ 576.12 crores respectively. It is having a strong nationwide presence and continues to reach out further with e-Home Loans IBHFL allows its customers to apply for a home loan and upload the requisite documents online. 

Disclaimer: INDIABULLS HOUSING FINANCE LIMITED (“Company”), subject to market conditions and other considerations is proposing a public issue of secured redeemable non-convertible debentures of face value of Rs. 1,000 each (“NCDs”) and has filed the Tranche IV Prospectus dated November 25, 2022 read together with Corrigendum to the Tranche IV Prospectus dated November 29, 2022 (“Tranche IV Prospectus”) with the Registrar of Companies, National Capital Territory of Delhi and Haryana, National Stock Exchange of India Limited, BSE Limited and SEBI. The Tranche IV Prospectus is available on the Company’s website www.indiabullshomeloans.com; on the website of the Stock Exchanges www.nseindia.com, www.bseindia.com, on the website of SEBI at www.sebi.gov.in and the respective websites of the lead managers at www.edelweissfin.com, www.akgroup.co.in, www.iiflcap.com and www.trustgroup.in. Investors proposing to participate in the Tranche IV Issue, should invest only on the basis of the information contained in the Tranche IV Prospectus. Investors should note that investment in this public issue of NCDs involves a high degree of risk and for details relating to the same, please refer to Tranche IV Prospectus and the section on “Risk Factors” beginning on page 20 of the Tranche IV Prospectus. The Company accepts no responsibility for statements made otherwise than in the Tranche IV Prospectus or in any advertisement or any other material issued by or at the instance of our Company and that anyone placing reliance on any other source of information would be doing so at their own risk.

LISTING: The NCDs offered through this Tranche IV Prospectus along with the Shelf Prospectus are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE” along with BSE, the “Stock Exchanges”). Our Company has received an ‘in-principle’ approval from BSE vide its letter no. DCS/BM/PI-BOND/027/21-22 dated March 23, 2022 and NSE vide its letter no. NSE/LIST/C/2022/0240 dated March 23, 2022 further extended vide its letter no. NSE/LIST/C/2022/0490 dated June 21, 2022 and vide its letter no. NSE/LIST/D/2022/0137 dated September 29, 2022. For the purposes of the Issue BSE shall be the Designated Stock Exchange.

GENERAL RISKS: Investment in debt securities involves a degree of risk and investors should not invest any funds in such securities unless they can afford to take the risk attached to such investments. Investors are advised to take an informed decision and to read the risk factors carefully before investing in this offering. For taking an investment decision, investors must rely on their examination of the Issuer and the Tranche IV Issue, including the risks involved in it. Specific attention of investors is invited to statement of risk factors contained under “Risk Factors” and “Material Developments” on pages 20 and 228 of the Tranche IV Prospectus, respectively. These risks are not, and are not intended to be, a complete list of all risks and considerations relevant to the debt securities or investor’s decision to purchase such securities. The Shelf Prospectus and the Tranche IV Prospectus have not been and will not be approved by any regulatory authority in India, including the Securities and Exchange Board of India (“SEBI”), the Reserve Bank of India (“RBI”), the NHB, RoC or any stock exchange in India nor do they guarantee the accuracy or adequacy of the document.

DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Tranche IV Prospectus for the full text of the “Disclaimer Clause of BSE.”

DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Tranche IV Prospectus for the full text of the “Disclaimer Clause of NSE.”

DISCLAIMER CLAUSE OF CRISIL RATINGS LIMITED

CRISIL Ratings Limited (CRISIL Ratings) has taken due care and caution in preparing the Material based on the information provided by its client and / or obtained by CRISIL Ratings from sources which it considers reliable (Information). A rating by CRISIL Ratings reflects its current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL Ratings. CRISIL Ratings does not guarantee the completeness or accuracy of the information on which the rating is based. A rating by CRISIL Ratings is not a recommendation to buy, sell, or hold the rated instrument; it does not comment on the market price or suitability for a particular investor. The Rating is not a recommendation to invest / disinvest in any entity covered in the Material and no part of the Material should be construed as an expert advice or investment advice or any form of investment banking within the meaning of any law or regulation. CRISIL Ratings especially states that it has no liability whatsoever to the subscribers / users / transmitters/ distributors of the Material. Without limiting the generality of the foregoing, nothing in the Material is to be construed as CRISIL Ratings providing or intending to provide any services in jurisdictions where CRISIL Ratings does not have the necessary permission and/or registration to carry out its business activities in this regard. Indiabulls Housing Finance Limited will be responsible for ensuring compliances and consequences of non-compliances for use of the Material or part thereof outside India. Current rating status and CRISIL Ratings’ rating criteria are available without charge to the public on the website, www.crisil.com. For the latest rating information on any instrument of any company rated by CRISIL Ratings, please contact Customer Service Helpdesk at 1800- 267-1301.

DISCLAIMER CLAUSE OF ICRA LIMITED

ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance, which may lead to revision in ratings. An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with reference to the instrument rated. Please visit our website www.icra.in or contact any ICRA office for the latest information on ICRA ratings outstanding. All information contained herein has been obtained by ICRA from sources believed by it to be accurate and reliable, including the rated issuer. ICRA however has not conducted any audit of the rated issuer or of the information provided by it. While reasonable care has been taken to ensure that the information herein is true, such information is provided ‘as is ’without any warranty of any kind, and ICRA in particular, makes no representation or warranty, express or implied, as to the accuracy, timeliness or completeness of any such information. Also, ICRA or any of its group companies may have provided services other than rating to the issuer rated. All information contained herein must be construed solely as statements of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.