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Indiabulls Housing Finance NCD Sept 2016:

One of leading private, housing finance company Indiabulls Housing Finance has come up with an issue of Secured & Unsecured issue of NCDs of worth Rs.3500 crore with an option to retain the over subscription of same amount,aggregating to issue size of Rs.7000 crore.

Indiabulls is non-deposit taking housing finance company registered with NHB.It offers housing loans and loan against property to salaries , self employed individuals,small-medium sized entrepreneurs.Company focuses more on long term,secured,mortgage backed loans.It also offers mortgage loans to real estate developers for residential and commercial purposes.

This is maiden public issue Indiabulls Housing Finance.

Details of Indiabulls Housing Finance NCD issue are as follows:

Imp Dates:

1.Issue Open Date:Sept 15, 2016.

2.Issue Close Date:Sept 23, 2016.(Issue has been closed on Sept 16, 2016 due to over subscription.)

Credit Rating : “AAA” from CARE & Brickwork which indicates very low credit risk.

Security: This NCD issue carries both secured and unsecured debentures.Investors of secured NCDs will receive cover against debentures while no security cover is against unsecured debentures but investors will be compensated with some higher coupon rates.

Following types of investors can apply:

Category I:Institutional investors (20% issue size reserved).

Category II: Non-institutional investors (20% issue size reserved).

Category III : HNIs (Resident individual / Karta of HUF applying for more than 10 Lakh).

Category IV : Resident individual applying for 10 Lakh or less.

Coupon Rates for Category IV Retail individual investors:

Coupon rates depends on tenure, interest payment frequencies and type of investor.Here NCDs have classified as per interest payment frequency – Monthly,Annual and Cumulative.

Monthly Interest Payment:

Indiabulls Housing Finance NCD Sept 2016 Monthly Interest

Annual Interest Payment:

Indiabulls Housing Finance NCD Sept 2016 Annual Interest

Cumulative payment Option:

Principal & interest on cumulative basis will be paid at maturity.

Indiabulls Housing finance NCD Sept 2016 Cumulative

Please note: 0.10% higher coupon rate for Category IV Senior Citizens.

PAT & NPA of  Indiabulls Housing finance:

Indiabulls housing ncd profit npa details

 

Other details:

1.Investor can apply in physical or demat mode.

2.Senior citizens applying for Rs.10 Lakh or less will get 0.10% higher coupon rates.

3.Taxation: Interest will be added in investors total income and taxed accordingly.Tax will not be deducted at source if NCDs are held in demat mode but it will be payable.

4.Allotment will be on first cum first served , on daily basis.

Should you invest or not:

Due to lower side interest rates from banks, risk appetite of retail investor for private NCDs is quite high.Especially,NCDs related to retail side lending are in high demand.Though interest rates are little lower as compared to DHFL or SREI Infra NCD, commensurate risk looks lower in this issue.So this NCD issue may also witness good demand .This issue has highest credit rating,low credit risk &  its maiden public issue of this company..so invest some part of fixed income as per credit risk profile.

10% SREI Infra NCD Sept 2016:

SREI Infra – only Infrastructure Finance Company (IFC) status company among NBFCs have come up with public issue of Secured,NCDs which will open on Sept 07, 2017.SREI is looking to raise Rs.250 crore with an option to retain over subscription up to Rs.1000 crore.

Imp Dates:

  1. Issue Open Date:Sept 07, 2016
  2. Issue Close Date:Sept 28,2016.

Security : NCDs are secured.Company will create appropriate security to ensure 100% cover for NCDs and interest thereon.Axis Debenture Trustees are trustees of this issue.

Credit Rating: BWR AA+ by Brickwork which indicates higher safety of the issue.For last NCD issue it was AA.

Investment options:Investor have different investment options for period of 400 Days, 36 Months & 60 Months with Cumulative,Monthly Interest Payout & Annual interest payout options.

Monthly interest payment option:

Monthly interest payment option is available for 03 Yrs and 05 Yrs period.Also, Demat mode is compulsory if you opt for monthly interest payout.

SREI INFRA SEPT 2016 NCD MONTHLY INTEREST PAYMENT INTEREST RATES

Annual Interest payment Option:

SREI INFRA - NCD-SEPT 2016-ANNUAL INTEREST

Cumulative Interest payment:

Series: I,III and IV.

SREI INFRA-SEPT2016-NCD-CUMULATIVE INTEREST RATES

Other details:

  1. NCDs will listed at BSE & NSE.
  2. Min application amount: Rs.10000/-.
  3. Non-ASBA applicants will get 8% application money interest.
  4. NCDs are fully secured.
  5. Allotment is on first come first served , per day basis.
  6. 60% of issue size is reserved for individual investors.
  7. Share Holding pattern: Indian promoters are holding around 60% and Banks,institutional ,FIIs have holding around 18.67% in this company.

Should you invest or not:

Considering lower side bank deposit rates we have witnessed a heavy demand across these NCDs. So we may also see good demand for this issue.Suggestion is do not invest for listing gains only.Judge your credit risk and invest a part of fixed income in this issue.

DHFL 10,000 Crore NCD Issue – August 29, 2016:

After success of its maiden public NCD issue of 4000 Crore, DHFL has come up with one more issue of 10,000 crore.Company will paid annual interest on NCDs for a tenure of 3 Yrs,5 Yrs and 7 Yrs as opted by investor.

DHFL is deposit taking Housing Finance Company (HFC) regulated by NHB – National Housing Bank which regulates,refinance & supervises HFCs conducting business in India.

Details of DHFL 10,000 crore NCD issue are as follows:

Important Dates:

  1. Issue open date: Aug 29, 2016.
  2. Issue close date: Sept 12, 2016.

Interest Rates:

Interest paid in this issue will be annual only.coupon rate for HNI and Retail individual investors are as follows

DHFL NCD ISSUE AUGUST 29,2016

Other details:

  1. Credit rating : “AAA” from CARE & BWR which indicates higher safety regarding timely servicing the financial obligations, as well it allow company to access debt financing at competitive rate of interest.
  2. 30% each of NCD issue size  reserved for HNIs and Retails individual investors.
  3. Taxation : Interest received will be added in debenture holders total income & taxed accordingly.If NCDs are held in physical mode & interest paid is above Rs.5000 then tax will be deducted at source.For NCDs held in demat mode no tax will be deducted at source but its taxable.If NCDs are sold in secondary market then appropriate long term or short term capital gain tax will be applicable.
  4. No put or call option :Neither company nor investor will able to redeem NCDs before maturity. NCDs held in demat mode can be sold in secondary market at prevailing yield.
  5. Security :NCDs will be secured by company by creating a first ranking pari passu charge on specific receivables of the issuer for the principal and interest thereon.

Financials of DHFL:

DHFL NCD FINANCIALS

DFL NCD PROFIT AFTER TAX

DHFL NPA Details:

dhfl ncd & NPA details

Most of the Housing Finance Companies have able to maintain their NPAs below 1% which indicates robust asset quality.

Should you invest in DHFL NCD or not:

This is individually customized decision considering individual credit risk profile.Considering credit rating,secured nature of issue & over all performance of company investor can think to invest small part in this issue.Its suggested to invest if you can able to hold NCDs till its maturity and investing just for listing gains may not be a good idea.

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