Indiabulls Housing Finance Limited is one of the largest housing finance companies ('HFCs') in India in terms of AUM. They are a non-deposit taking HFC registered with the NHB. They focus primarily on long-term secured mortgage-backed loans and as of the date of this Shelf Prospectus, majority of the loan book comprises of secured loans. They primarily offer housing loans and loans against property to the target client base of salaried and self-employed individuals and micro, small and medium-sized enterprises ('MSMEs'). 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. A majority of the assets under management ('AUM') comprise housing loans, including in the affordable housing segment, as defined by the RBI. As of March 31, 2021, housing loans and non-housing loans constituted 65% and 35%, respectively of the consolidated AUM. Company's offices include the head office, master service centres, branch offices and service centres. The network of 135 offices spread across 92 cities gives them a pan-India presence and allows them to interact with and service the customers. As of June 30, 2021, they had a direct sales team of over 1,363 employees who were located across the network. This sales team is instrumental in sourcing the majority of the customers. They also rely on external channels, such as direct sales agents for referring potential customers to them. In addition, they have an online home loans fulfilment platform called e-Home Loans which allows the customers to apply for a home loan and upload the requisite documents online. As at June 30, 2021 and March 31, 2021, 2020 and 2019, the consolidated gross NPAs as a percentage of the consolidated AUM were 2.86%, 2.66%, 1.84% and 0.88%, respectively, and the consolidated net NPAs (which reflect the gross NPAs less provisions for ECL on NPAs (Stage 3) for the three months ended June 30, 2021 and the years ended March 31, 2021, 2020 and 2019, as a percentage of the consolidated AUM were 1.55%, 1.59%, 1.24% and 0.69%, respectively. As of June 30, 2021, they have total ECL allowance amounting to Rs 3,599.84 crores for loans on a consolidated basis which is equivalent to 5.50% of the loan book and 158.70% of the Gross NPAs. Brand name of company, good rating and above average 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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