Indiabulls Commercial Credit Limited is a non-deposit taking NBFC registered with the RBI and a 100% subsidiary of Indiabulls Housing Finance Limited, one of the largest housing finance companies in India. Company focuses primarily on long-term secured mortgage-backed loans. They offer loans against property to the target client base of salaried and self-employed individuals and small and medium-sized enterprises. They also offer mortgage loans to real estate developers in India in the form of lease rental discounting for commercial premises and construction finance for the construction of residential premises. As of March 31, 2018, mortgage loans constituted 98.21% of the total AUM. As of March 31, 2018, Company had offices spread across India. Company's network (including that of parent company IHFL) gives them a pan-India presence across Tier I, Tier II and Tier III cities in India which also allows to interact with and service the customers at the local level, whilst ensuring that credit decisions are taken only at regional hubs in accordance with defined and identified internal parameters and protocols. As of March 31, 2018, company had a sales team of over 3,500 employees who were located across the network (including that of IHFL). They also rely on external channels such as direct sales agents and business associates for referring potential customers. Company's borrowings as at June 30, 2018, March 31, 2018 and 2017 amounted to Rs 8,046.19 crores, Rs 6,937.94 crores and Rs 2,799.50 crores, respectively. They rely on long-term and medium-term borrowings from banks, amongst others, including issuances of non-convertible debentures and commercial papers. Company has a diversified lender base comprising public sector undertakings ('PSUs'), private banks, mutual funds, provident funds, pension funds and others. They 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 for company. As at FY18, FY17 and FY16, the gross non-performing assets NPAs as a percentage of the AUM were 0.60%,1.78% and 2.25%, respectively, and the net NPAs as a percentage of the AUM were 0.40%, 1.34% and1.76%, respectively. As of FY18, FY17 and FY16, capital to risk (weighted) assets ratio ('CRAR') was 18.72%, 20.49% and 38.29% respectively. For the FY18, FY17 and FY16, total revenue from operations was Rs 843.37 crores, Rs 365.91 crores and Rs 364.10 crores, respectively, and profit after tax was Rs 254.90 crores, Rs 58.56 crores and Rs 50.55 crores, respectively. Company's revenue from operations and profit after tax grew at a compound annual growth rate ('CAGR') of 52.19% and 124.56%, respectively, from Fiscal Year 2016 to Fiscal Year 2018. This issue is rated CRISIL AAA/Stable (pronounced as CRISIL triple A rating with stable outlook) for an amount of Rs 3,000 crores, by CRISIL Limited, CARE AAA/Stable (pronounced as triple A; outlook: stable) for an amount of Rs 3,000 crores, by CARE Ratings Limited. The rating of NCDs by CRISIL 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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