Indiabulls Consumer Finance Limited NCD – Feb 2019, 11%
(Indiabulls NCD )
Instrument type – Secured NCD
Coupon rate – 10.75 – 11%
Tenure – 26 months, 38 months, 60 months
Coupon payment term – Monthly, annual, cumulative
Issue tranche I open and closing date – Feb 4 – March 4, 2019
Rating – BWR AA+|CARE AA STABLE
Issue size – 250 crore, option to retain upto 2750 Crore[WU1] , total – 3000 crore
Indiabulls Consumer Finance Limited (ICFL), 100% subsidiary of Indiabulls Ventures Limited (IBVL) launched a public issue of Secured Non-Convertible Debentures (NCDs) with a base issue size of ₹ 250 crs and an option to retain oversubscription of another ₹ 2,750 crs which is within the shelf limit of Rs. 3,000 crore on February 04, 2019. Allotment in the issue is on a first come first serve basis.
ICFL is a non-deposit taking NBFC registered with the RBI and the NCDs proposed to be issued under this issue have been rated AA+ by Brickwork Ratings and AA STABLE by CARE.
The NCD issue will have options of 26 months, 38 months, and 60 months maturities with an attractive interest rate of up to 11.00% p.a., the minimum application size will be ₹ 10,000/-. These NCDs are proposed to be listed on both BSE and the 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 and Trust Investment Advisors Private Limited are the Lead Managers to the issue.
IDBI Trusteeship Services Limited is the Debenture Trustee, while Karvy Fintech Private Limited is the Registrar to the Issue.
Detailed Issue Structure
Investors can get upto 11% return in the issue, makes it an attractive option, however, it has a notch high risk with CARE AA rating (AAA being the highest rating). The instrument is secure NCD, hence retail investor can look at investing some portion of their fixed investment I this, however a moderatey conservative investor should not allocate more than 10% of fixed income portfolio in this.
About Indiabulls Consumer Finance Limited
Indiabulls Consumer Finance Limited (ICFL) is a non-deposit taking systemically important NBFC registered with the RBI and a 100% subsidiary of Indiabulls Ventures Limited, a listed Indian company. ICFL focus primarily on providing personal loans, business loans (unsecured SME loans and secured SME loans) and other loans. Company’s AUM increased by 4254.6% from Rs. 919.10 million as at March 31, 2017 to Rs 40,018.32 million, Indiabulls Consumer Finance Limited (BWR AA+|CARE AA STABLE) to open
Public Issue of Secured NCDs of ₹ 250 crore / ₹ 3,000 Crore on as at March 31, 2018.
ICFL is part of the Indiabulls Ventures group, which is a prominent financial services company providing brokering, lending and wealth management businesses, amongst other businesses. Company’s Promoter, Indiabulls Ventures Limited, was incorporated in 1995; and its long standing presence in financial services has enabled us to establish “Indiabulls” as a recognized brand in the financial services sector. In order to ensure expansion of the Company’s lending operations, Promoter has infused funds periodically in the form of equity in our Company. As of December 31, 2018, we had presence in 124 cities throughout India through which the company market as loan products, enabling them to operate on a pan-India basis.
Indiabulls Consumer Finance Limited, is proposing, subject to market conditions and other considerations, a public issue of its secured and redeemable non-convertible debentures and has filed a prospectus dated Shelf Prospectus and Tranche I Prospectus dated January 30, 2019, (“Prospectus”), with the Registrar of Companies, National Capital Territory of Delhi and Haryana, the National Stock Exchange of India Limited, BSE Limited and the Securities and Exchange Board of India (“SEBI”) (for record purposes). All investors proposing to participate in the public issue of NCDs by Indiabulls Consumer Finance Limited should invest only on the basis of information contained in the Prospectus. Investors are advised to read the Risk Factors, starting on page 15 of the Prospectus carefully before taking an investment decision in the Issue. For the purpose of taking an investment decision, the investors must rely on their own examination of the Issuer and the Issue including the risks involved. The Prospectus is available on Company’s website at www.indiabullscommercialcredit.com, on the website of the stock exchanges at www.nseindia.com and www.bseindia.com, on the website of the SEBI at www.sebi.gov.in and the respective websites of the Lead Managers to the Issue at www.edelweissfin.com; www.akgroup.co.in; www.axisbank.com and www.trustgroup.in. Physical copies of the abridged Prospectus containing the salient features of the Prospectus together with Application Forms may be obtained from(a) Our Company’s Registered Office and Corporate Office;(b) Offices of the Lead Managers;(c) Trading Members; and (d) Designated Branches of the SCSBs.