Indiabulls Commercial Credit Limited (ICCL), 100% subsidiary of Indiabulls Housing Finance Limited (IBHFL) is opening a public issue of Secured Non-Convertible Debentures (NCDs) with a base issue size of Rs. 1,000 crs and an option to retain oversubscription of another Rs. 1,000 crs on 11th September 2018. Allotment in the issue is on a first come first serve basis. ICCL is a non-deposit taking NBFC registered with the RBI and the NCDs proposed to be issued carry a dual AAA rating from CRISIL and CARE. The rating of NCDs by CRISIL indicate that instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations and these instruments carry the lowest credit risk.
The NCD issue will have options of 2, 3, 5 and 10 year maturities with an attractive interest rate of up to 9.20% p.a., the minimum application size will be Rs. 10,000/- . These NCDs are proposed to be listed on both BSE and the National Stock Exchange (NSE). For listed NCDs there is no TDS applicable when investors subscribe to them in Demat form.
Edelweiss Financial Services Limited, A. K. Capital Services Limited, Axis Bank Limited, Trust Investment Advisors Private Limited, YES Bank Limited and Yes Securities (India) Limited are the Lead Managers to the issue.
Axis Trustee Services Limited is the Debenture Trustee, while Karvy Computershare Private Limited is the Registrar to the Issue.
Ajit Kumar Mittal, Chairman, ICCL, said, “In 2016, IBHFL did a successful public issue of NCDs aggregating to ₹ 7,000 crores which was subscribed in a day, demonstrating the trust in Indiabulls by all categories of investors. This issue is also attractively priced, offering up to 9.20% to Retail & HNI Investors for 10 years tenor, and coupled with the highest possible AAA ratings, I am confident of a similar response to this issue as well.”
Mr. Ripudaman Bandral, Managing Director, ICCL, said, “We plan to use the issue proceeds primarily towards onward lending, which will provide a thrust to the company’s growth plans in the secured mortgage-lending space while diversifying our borrowing profile.”
Detailed Issue Structure
About Indiabulls Commercial Credit Limited
Indiabulls Commercial Credit Limited (ICCL) is a 100% subsidiary of Indiabulls Housing Finance Limited (IBHFL) and a non-deposit taking systemically important NBFC registered with RBI and notified under the SARFAESI Act. ICCL focuses primarily on long-term secured mortgage-backed loans. The Company offers loans against property to the target client base of salaried and self-employed individuals and small and medium-sized enterprises. Company also offer mortgage loans to real estate developers in India in the form of lease rental discounting for commercial premises and construction finance for the construction of residential premises.