Indiabulls Housing’s NCD Tranche III Issue opens today, coupon rate upto 9.55%

The Tranche III issue has a base issue size of ₹100 crore with an option to retain oversubscription up to ₹700 crore, aggregating up to Rs. 800 crore. The Tranche III issue offers various series of NCDs for subscription with coupon rates ranging from 8.33% to 9.55% per annum, applicable as per respective series for selected category of NCD holders.

The NCDs under the Tranche III Issue have tenures of 24 months (Series I, II, III), 36 months (Series IV, V, VI) and 60 months (Series VII, VIII). NCDs cannot be converted into shares or equities and the interest rates are decided by the company issuing the NCDs.

The Company is also offering an additional incentive of 0.25% to the category III (High Net-worth Individual Investors) and category IV (Retail Individual Investors) Investors in the proposed Tranche III issue.

The NCDs are proposed to be listed on BSE Limited and National Stock Exchange of India Limited (NSE) with BSE as the Designated Stock Exchange for the Tranche III Issue. The NCDs have been rated ‘CRISIL AA/Stable’ by CRISIL Ratings Limited and ‘[ICRA]AA (Stable)’ by ICRA Limited.

Indiabulls Housing Finance said that net proceeds of the Tranche III Issue, after meeting the expenditures of and related to the Tranche III 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.

The Lead Managers to the Tranche III 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 III Issue and KFin Technologies Limited is the registrar to the Tranche III Issue.