Indiabulls Commercial Credit Limited NCD
(i) Indiabulls Commercial Credit Limited, incorporated in 2006, is a wholly owned subsidiary of Indiabulls Housing Finance Ltd. (IHFL) and is classified as a Non-Deposit taking Systematically Important (ND-SI) Non-Banking Financial Company (NBFC).
(ii) Indiabulls Commercial Credit Limited with strong parental support has considerable expertise in mortgage-based financing. SME loans, that ICCL and IHFL underwrite are in the lowest risk segment where loans are given out to small businesses. ICCL emphasizes on self-occupied residential properties for collateral, appraising loans which are verified as per cash-flow; and most importantly, loans meant for productive business deployment which has to be demonstrated at the time of loan appraisal – all of which is aimed to help small business owners further their business plans.
(iii) At an operational level, although IHFL and ICCL operate separately, ICCL being a wholly owned subsidiary of IHFL enjoys the facilities and expertise of the consolidated entity, thus giving ICCL the benefit of strong business processes, the expertise of business personnel, robust underwriting procedures and a prudent risk management approach of the parent IHFL.
(iv) For the Fiscal Years 2018, 2017 and 2016, our revenue from operations was Rs.843.37 crores, Rs.365.91 crores and Rs.364.10 crores, respectively, and our profit after tax was Rs.254.90 crores, Rs.58.56 crores and Rs.50.55 crores, respectively. Our revenue from operations and profit after tax grew at a compound annual growth rate (“CAGR”) of 52.19% and 124.56%, respectively, from Fiscal Year 2016 to Fiscal Year 2018.
(v) Our revenue from operations increased by Rs.477.46 crores from Rs.365.91 crores for the Fiscal Year 2017 to Rs.843.37 crores for the Fiscal Year 2018. Our profit after tax increased by Rs.196.34 crores, from Rs.58.56 crores for the Fiscal Year 2017 to Rs.254.90 crores for the Fiscal Year 2018. The key areas of focus for our Board of Directors and our Company are asset liability management and integrated
Objective of NCD Indiabulls Commercial Credit Limited NCD:
Objective of
Indiabulls Commercial Credit Limited NCD
are: 1. For the purpose of onward lending, financing, and for repayment of interest and principal of existing borrowings of the Company 2. General corporate purposes.Indiabulls Commercial Credit Limited NCD Details:
| Open Date: | Sep 11 2018 |
| Close Date: | Sep 15 2018 |
| Issue Type: | Fixed Type Issue |
| Issue Size: | ₹ 1000 Cr. |
| Face Value: | ₹ 1000 Per NCD |
| Market Lot: | 1 NCD |
| Minimum Order Quantity: | 10 NCD |
| Listing At: | BSE |
Promoters:
Promoters of Indiabulls Commercial Credit Limited NCD Company are:
The promoter is Indiabulls Housing Finance Limited. IHFL was incorporated under the Companies Act, 1956 on May 10, 2005, IHFL is one of the largest housing finance company in India.
Financials:
| Year | Revenue(cr) | PAT(cr) | EPS |
| 2017 | 408.5 | 58.5 | 13.4 |
| 2018 | 931 | 254.9 | 40.8 |
Credit Rating:
The NCDs proposed to be issued under this Issue have been rated CRISIL AAA/Stable (pronounced as CRISIL triple-A rating with a stable outlook) for an amount of Rs. 3,000 crores, by CRISIL Limited, vide their letter no. INDBIC/205111/NCD/111704279/4 dated August 16, 2018, CARE AAA Stable (pronounced as triple-A; outlook: stable) for an amount of 3,000 crores, by CARE Ratings Limited vide their letter no. CARE/HO/RL/2018-19/2539 dated August 14, 2018.
Conclusion: 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. Such instruments carry the lowest credit risk.
Interest Rates:
| Series | I | II | III | IV | V | VI | VII | ||||||
| Frequency | Cumulative | Cumulative | Annual | Monthly | Annual | Monthly | Annual | ||||||
| Minimum Application | Rs. 10,000/‐ (10 NCDs) | ||||||||||||
| Face Value | Rs. 1,000/‐ | ||||||||||||
| In Multiples of thereafter (Rs.) | Rs. 1,000/‐ (1 NCD) | ||||||||||||
| Tenor | 2 years | 3 years | 3 years | 5 years | 5 years | 10 years | 10 years | ||||||
| Coupon Rate Category I & II | NA | NA | 8.80% | 8.57% | 8.90% | 8.75% | 9.10% | ||||||
| Coupon Rate Category III & IV | NA | NA | 8.90% | 8.66% | 9.00% | 8.84% | 9.20% | ||||||
| Effective Yield for Category I & II | 8.70% | 8.80% | 8.79% | 8.90% | 8.90% | 9.10% | 9.09% | ||||||
| Effective Yield for Category III & IV | 8.80% | 8.90% | 8.89% | 9.00% | 9.00% | 9.20% | 9.19% | ||||||
| Mode of Interest Payment | Through various mode available | ||||||||||||
Post Tax returns:
(i) Sold after Maturity
The interest earned through NCDs will be added to the total income and will be taxed at 5%, 20%, and 30% respectively depending upon the income slab of an Individuals.
(ii) Sold Before Maturity
If you decide to sell the NCDs on the stock exchange, capital gains can also arise. If NCDs are sold with in a period of 12 months from the date of allotment, short term capital gains / loss (STCG) will arise and if you decide to sell NCDs after a period of 12 months, the resulting gain or loss is called long term capital gains / loss (LTCG).
Recommendation:
Review and Recommendation of Indiabulls Commercial Credit Limited NCD from IZ team is: 6/10
1-5: Good
5-7: Fair
7-10: Excellent
Lead Manager of Indiabulls Commercial Credit Limited NCD:
- A. K. Capital Services Limited
- Axis Bank Limited
- Edelweiss Capital Limited
- Trust Investment Advisors Private Limited
- YES Bank Limited
- Yes Securities (India) Limited
Registrar of Indiabulls Commercial Credit Limited NCD:
- Karvy Computershare Private Limited
Discussion on Indiabulls Commercial Credit Limited NCD:
7 Comments
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I had invested Rs. 1,50,000 in this Indiabulls Commercial Credit Ltd NCD on Sept’ 2018 under the plan “3 Yrs. Cumulative NCD” and received the Allotment Advice on 25-SEP-2018 ( Allotment Advice# 8392, Application# 32300801) , as per the tenure it should be matured by now (16-OCT-2021). However, the maturity value have not credited in my Bank Account. Can anyone please advice what is the next step to get my money back?
NCD ALLOTED. AMOUNT DEBITED.
Nice. Keep us updated about listing gain as well.
Indiabulls Commercial Credit Limited NCD Closes today i.e. 14-9-2018. Please get all your offline applications bidded before 4 pm today.
1st Day Subscription till 4:00 PM
1. Institutional(20%)- 10
2. Corporate(20%)- 0.00
3. HNI(30%)- 0.26
4. Retail(30%)- 0.05
5. Total-1.12
Sir any update on allotment and listing ?
It is a subsidiary of IndiaBulls Housing Finance Limited. FY 2017-18 was indeed momentous as IBHFL’s rating was upgraded to the highest long-term credit rating of AAA by CRISIL, a Standard & Poor’s company and ICRA, a Moody’s company. IBHFL became only the second private non-bank lender on standalone strength to be upgraded to AAA by CRISIL in last 25 years. With these upgrades, all four major credit rating agencies in India – CRISIL, ICRA, CARE and Brickworks, rate IBHFL at the highest long-term credit rating of AAA.
Conclusion: The Credit Risk in applying in NCD is very minimal.