The Company was incorporated as ‘Malpani Securities Private Limited’, a private limited company under the provisions of the Companies Act, 1956, pursuant to a certificate of incorporation dated October 27, 1994 issued by the RoC. Subsequently, the name of the Company was changed to ‘Shivshakti Financial Services Private Limited’ pursuant to a fresh certificate of incorporation dated January 13, 2010. The name of the Company was changed to ‘IVL Finance Limited’ pursuant to a fresh certificate of incorporation dated October 19, 2016. Pursuant to a fresh certificate of incorporation dated September 18, 2018, the name of the Company was changed to ‘Indiabulls Consumer Finance Limited’. Thereafter, the name of the Company was changed to ‘Dhani Loans and Services Limited’ and a fresh certificate of incorporation, consequent upon change of name was issued by the RoC on July 7, 2020. The Company is registered as a systemically important Non-Banking Financial Company under section 45-IA of the Reserve Bank of India Act, 1934 and a 100% subsidiary of Dhani Services Limited (formerly Indiabulls Ventures Limited), a listed Indian company. Company focus primarily on providing personal loans and business loans, which includes unsecured SME loans and secured SME loans. As on the date of this Draft Shelf Prospectus, we have catered to the financial requirements of customers by disbursing over 5.75 million loans. The company is the part of the Dhani group. Promoter, Dhani Services Limited (formerly Indiabulls Ventures Limited) is a consumer business that provides digital healthcare and digital transactional finance to its customers. Dhani Services Limited (formerly Indiabulls Ventures Limited), was incorporated in 1995. The company have developed an end-to-end personal loan fulfilment mobile based application “Dhani”, which is an automated mode of lending that enables loan application, risk analysis, credit approval, underwriting and disbursal processes to be carried out electronically. As of December 31, 2020, The company have disbursed loans to customers in over 200 cities in India through our “Dhani” mobile application, enabling it to operate on a pan-India basis. The Company has set up its lending business primarily driven by analytics driven digital lending platform, which enables delivery of customized offerings to loan applicants. The Company has made significant investments in technology which enables faster application-based disbursals, thus reducing the operating costs and containing risk. The Company’s robust credit underwriting model processes the same information as required in any traditional underwriting process including credit history, income and demographic details etc. The Company has developed robust analytical lending models and scorecards. Company believe thier investments in analytics in today’s digital era will provide them with a competitive edge over traditional players which are dependent on a branch-based model to acquire and service customers. The Company is highly capitalized and will continue operating with a focus to increase its customer franchise and at the same time operate at conservative gearing levels.
Company's Financial Performance
The loan book has grown from ₹ 40,018.32 million as at March 31, 2018 to ₹ 47,092.47 million as at March 31, 2020. As on December 31, 2020 the loan book amounted to ₹ 53,237.19 million. Borrowings as at December 31, 2020 and March 31, 2020 amounted to ₹ 34,583.62 million and ₹ 47,529.75 million, respectively. Company rely on long-term and medium-term borrowings from banks; amongst others, including issuances of non-convertible debentures. The company have a diversified lender base comprising public sector undertakings (“PSUs”), private banks, mutual funds, provident funds and others. Company also sell down parts of our portfolios through securitization and/or direct assignment of loan receivables to various banks or mutual funds. As at March 31, 2020, Gross NPAs as a percentage of AUM was 0.94%, and net NPAs as a percentage of AUM was 0.36%. As of December 31, 2020, March 31, 2020, March 31, 2019 and March 31, 2018, capital to risk (weighted) assets ratio was 51.23%, 58.92%, 37.70% and 36.67%, respectively. consolidated revenue from operations increased from ₹ 7,000.44 million in Fiscal 2018 to ₹ 26,790.26 million in the Fiscal 2020 at a CAGR of 95.63%. Company has incurred a loss after tax of ₹ 374.27 million in Fiscal 2020 as compared to a profit after tax of ₹ 3,845.16 million in Fiscal 2019 and ₹ 1,915.22 million in the Fiscal 2018. For the nine month period ending December 31, 2020, our total income was ₹ 9,967.11 million and the profit after tax for the period was ₹ 243.19 million.
Credit Rating of Indiabulls Commercial Credit Limited
Company have obtained a credit rating of “AA-” from CARE (Outlook: Stable) and “AA” from Brickwork (Outlook: Stable). They have also received short-term credit rating of “A1+” from CARE and Brickwork. These ratings signify a high degree of safety, regarding timely servicing of financial obligations and low credit risk. The credit rating of “A1+” signifies the highest short term credit rating. The company believe that the ratings result in a lower cost of funds for the Company.
What Debenture Holders are getting in the name of Security
The NCDs proposed to be issued will be secured by a first ranking pari passu charge on present and future receivables and current assets of the Issuer for the principal amount and accrued interest thereon as specifically set out in and fully described in the Debenture Trust Deed. The NCDs will have an security cover of minimum one time on the principal amount and interest thereon. The Issuer reserves the right to sell or otherwise deal with the receivables, both present and future, including without limitation to create a charge on pari passu or exclusive basis thereon for its present and future financial requirements provided that a minimum security cover of one time on the principal amount and accrued interest thereon, is maintained.
Object of the Issue
at least 75% of the amount proposed to be financed from the Net Proceed will be used for the purpose of onward lending, financing, and for repayment /prepayment of interest and principal of existing borrowings of our Company. Maximum upto 25% will be used for General Corporate Purposes
Suggestion:- For complete information do refer to the NCD Prospectus before investing
