Started in 1994, Mumbai based Indiabulls Consumer Finance Limited (ICFL) is a non-deposit taking NBFC. The company is a 100% subsidiary of Indiabulls Ventures Limited. It also has a product called 'Indiabulls Dhani', a completely online personal loan fulfilment offering. IBCFL also offers business loans to small and medium businesses. The company also offers online trading services. It has a client base of over 6 lacs customers. The company has a dedicated sales team of over 900 individuals in more than 18 cities. It also markets non-discretionary wealth management products through its subsidiaries. In Fiscal 2018, it launched end-to-end personal loan fulfillment mobile based online application "Dhani", an automated mode of lending which will enable loan application, risk analysis, credit approval, underwriting and disbursal processes to be carried out electronically through the application. With the help of online and offline marketing, its loan disbursement is showing steady growth. ICFL is a part of the Indiabulls Ventures group, which is a prominent financial services company providing brokering, lending and wealth management businesses, amongst other businesses. Parent company was incorporated in 1995; and its long standing presence in financial services has enabled it to establish "Indiabulls" as a recognised brand in the financial services sector. In order to ensure expansion of Company's lending operations, parent company has infused funds periodically in the form of equity in ICFL. As of December 31, 2018, it had presence in over 100 cities throughout India, through which it markets loan products, enabling to operate on a pan-India basis. As at March 31, 2018, ICFL's gross NPAs as a percentage of AUM was 0.05%, and net NPAs as a percentage of AUM was 0.05%. As of September 30, 2018, March 31, 2018, 2017 and 2016, its capital to risk (weighted) assets ratio was 39.83%, 36.67%, 90.03% and 108.51% respectively. The company has posted total income/net profit of Rs. 57.24 cr. / Rs. 6.69 cr. (FY17) and Rs. 700.04 cr. / Rs. 191.52 cr. (FY18). For first nine months ended on 31.12.18 of FY19 it has earned net profit of Rs. 319.48 cr. on total income of Rs. 1148.67 cr. Post this issue, its current debt equity ratio of 1.55 will rise to 2.25. Its loan book amounted to Rs. 10334.38 cr. as at December 31, 2018. The CRAR of 36.67% as at March 31, 2018 maintained by it is significantly higher than the minimum capital adequacy requirement of 15.00% as stipulated by the RBI, and the average CRAR of 15.70% as of March 31, 2018 maintained by NBFCs. (Source: ICRA Report 2018). This issue is rated CARE AA/Stable (by CARE Ratings Limited) and, BWR AA+/Stable (by Brickwork Ratings India Private Limited). The rating of NCDs by CARE and BWR indicate that instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry the lowest credit risk. Good Rating, sound financials and lucrative coupon rates make this offer a worthy option for investors looking for long term fixed income. We give SUBSCRIBE rating to debt issue.
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