Indiabulls Commercial Credit Limited is a non-deposit taking NBFC registered with the RBI and a 100% subsidiary of IHFL(Indiabulls Housing Finance Limited), one of the largest listed housing finance companies (“HFCs”) in India in terms of AUM. The company is also a notified financial institution under the SARFAESI Act. The company focuses primarily on long-term secured mortgage-backed loans. Company offer loans against property to the target client base of salaried and self-employed individuals, including to small and medium-sized enterprises. It also offers mortgage loans to real estate developers in India in the form of lease rental discounting for commercial premises and construction finance. As of March 31, 2020, mortgage loans constituted 80.64% of loan book. As of December 31, 2020, Company had offices spread across India. The company's network (including that of parent company IHFL) gives it a pan-India presence across Tier I, Tier II and Tier III cities in India which also allows the company to interact with and service the customers at the local level, whilst ensuring that credit decisions are taken at regional hubs in accordance with defined and identified internal parameters and protocols. As of December 31, 2020, the company had a sales team of over 800 employees who were located across the network (including that of IHFL). The company also relies on external channels such as direct sales agents and business associates for referring potential customers.
Company's Financial Performance
The borrowings as at December 31, 2020, March 31, 2020, 2019 amounted to ₹ 8,390.54 crores, ₹ 8,878.06 crores and ₹ 10,806.62 crores, respectively and borrowings as per I GAAP as at March 31, 2018 amounted to ₹ 6,937.94 crores . Company rely on long-term and medium-term borrowings from banks, amongst others, including issuances of non-convertible debentures. Company have a diversified lender base comprising public sector undertakings (“PSUs”), private banks, mutual funds, provident funds, pension funds and others. The company also sell down parts of the portfolio through securitization and/or direct assignment of loan receivables primarily to various banks, which results in an additional source of liquidity.
As of December 31, 2020, and March 31, 2020, and 2019, gross non-performing assets NPAs as a percentage of AUM were 5.44%, 2.56% and 1.12%, respectively, and net NPAs (which reflect gross NPAs less provisions for ECL on NPAs (Stage 3) for the nine months ended December 31, 2020, and the years ended March 31, 2020, and 2019, as a percentage of our AUM, were 3.89%, 2.00% and 0.84%, respectively. As of March 31, 2018, gross non-performing assets NPAs as a percentage of AUM were 0.61%, and net NPAs (which reflect gross NPAs less provision for NPAs) as a percentage of AUM were 0.40%. As of December 31, 2020, and March 31, 2020, 2019 and 2018, capital to risk (weighted) assets ratio (“CRAR”) was 34.62%, 32.44%, 27.88% and 18.72% respectively.
For the nine months ended December 31, 2020, and the Fiscal Years 2020, 2019 and 2018, total revenue from operations was ₹ 1,256.09 crores, ₹ 2,190.47 crores, ₹ 1,759.91crores and ₹ 928.06 crores, respectively and net profit after taxes was ₹ 277.97 crores, ₹ 19.81crores, ₹ 323.00 crores and ₹ 268.56 crores, respectively. Revenue from operations as per IND AS grew at a compound annual growth rate (“CAGR”) of 53.63% from Fiscal Year 2018 to the Fiscal Year 2020. Revenue from operations increased by ₹ 430.56 crores from ₹ 1,759.91 crores for the Fiscal Year 2019 to ₹ 2,190.47 crores for the Fiscal Year 2020.
Credit Rating of Indiabulls Commercial Credit Limited
The Company have a long-term credit ratings of “AA; Stable” from CRISIL and “AA; Negative” from CARE (for the long-term loans and non-convertible debentures) and “AA+/Negative” from Brickwork Ratings (for our long-term loans and non-convertible debentures). Additionally, we have a credit rating of “AA; Stable” from CRISIL and “AA; Negative” from CARE Ratings and “AA+/Negative” from Brickwork Ratings in relation to subordinated debt programme.
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 (including investments) of the Issuer for the principal amount and accrued interest thereon created in favour of the Debenture Trustee, as specifically set out in and fully described in the Debenture Trust Deed. The NCDs will have a minimum asset cover of 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, on such terms and conditions as the Issuer may think appropriate, without the consent of, or intimation to, the NCD Holders or the Debenture Trustee in this connection. However, if consent and/or intimation is required under applicable law, then the Company shall obtain such consents and/ or intimation in accordance with such law. We have received necessary consents from the relevant debenture trustees and security trustees for ceding pari passu charge in favour of the Debenture Trustee in relation to the NCDs.
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
