Indiabulls Commercial Credit Limited’s NCD Issue now Open

Ahmedabad: Headquartered in New Delhi, Indiabulls Commercial Credit Limited (ICCL) (“Company” or “Issuer”), is a Non-Banking Financial Company (NBFC), registered with the Reserve Bank of India (RBI), has announced the public issue of secured, redeemable, non-convertible debentures of the face value of Rs. 1,000 each (“NCDs”). The Tranche I Issue opened and closes on Friday, January 27, 2023. 

The company in the statement said, “The Tranche I Issue has a base issue size of Rs  100 crores with an option to retain oversubscription up to Rs  100 crores, aggregating up to Rs  200 crores (“Tranche I Issue”) within a shelf limit of Rs  1,000 crore. The Tranche I Issue offers various series of NCDs for subscription with coupon rates ranging from 9.05% p.a to 10.30% p.a. The NCDs are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE” together with BSE, the “Stock Exchanges”) BSE shall be the Designated Stock Exchange for the Tranche I Issue. The NCDs have been rated “CRISIL AA/Stable” by CRISIL Ratings Limited and “[ICRA]AA (Stable)” by ICRA Limited.”

“The NCDs under the Tranche I Issue have tenures of 24 months (Series I, II, III), 36 months (Series IV, V, VI), and 60 months (Series VII, VIII). Effective yield (per annum) for the NCD holders in Category I (Institutional Investors) & Category II (Non-Institutional Investors) ranges from 9.39% p.a to 9.81% p.a and for Category III (High Net-worth Individual Investors) and Category IV (Retail Individual Investors) holders ranges from 9.79% p.a to 10.30% p.a. Interest payment modes for the NCDs are Annually, Monthly or Cumulative as per the series selected by the investors. Amount on maturity for the NCD holders in Category I (Institutional Investors) & Category II (Non-Institutional Investors) ranges from Rs  1,000 to Rs  1,315.10 per NCD and for Category III (High Net-worth Individual Investors) and Category IV (Retail Individual Investors) ranges from Rs  1,000 to Rs  1,333.20 per NCD. The Tranche I Issue option for staggered redemption by face value through annual payments under 36 months (Series IV and Series VI) and 60 months (Series VII and Series VIII),”  the company statement further said. 

“The Company is also offering an additional incentive of 0.25% to the Category III and Category IV Investors in the proposed Tranche I Issue who are also holders of NCD(s)/bond(s) previously issued by Company, and/or its holding company as the case may be, and/or are equity shareholder(s) of Indiabulls Housing Finance Limited as the case may be (“Primary Holder(s)”) on the Deemed Date of Allotment and applying in Series I, Series III, Series IV, Series VI, Series VII and/or Series VIII, provided the NCDs issued under this Tranche I Issue are held by the investors on the relevant Record Date applicable for payment of respective coupons, in respect of Series I, Series III, Series IV, Series VI, Series VII and/or Series VIII,” the Company claimed in its release. 

“The Lead Managers to the Issue are Edelweiss Financial Services Limited, Elara Capital (India) Private Limited, and Trust Investment Advisors Private Limited. Beacon Trusteeship Limited is the Debenture Trustee to the Issue and KFin Technologies Limited is the Registrar to the Tranche I Issue,” reads the statement. 

ICCL in its release also said, “Net proceeds of the Tranche I Issue, after meeting the expenditures of and related to the Tranche I 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. “

“For the six months ended September 30, 2022, ICCL reported a PAT of Rs  236.90 crore on a total income of Rs  937.11 crore, compared with Rs  268.53 crore and Rs  859.60 crore, respectively during the corresponding period of the previous fiscal,” said the company release. 

According to the company’s statement, The terms of each series of NCDs offered under the Tranche I Issue are set out below:

* Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.