Indiabulls Housing Finance Limited

Indiabulls Housing Finance Limited is a non-deposit taking housing finance company ('HFC') registered with the NHB. They are also a notified financial institution under the SARFAESI Act. They pre-dominantly offer housing loans and loans against property to the varied client base which comprises (i) salaried and employees; (ii) self- employed individuals; (iii) micro, small and medium-sized enterprises ('MSMEs'); and (iv) corporates. They focus primarily on long-term secured mortgage-backed loans. 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, 2023, housing loans and non-housing loans, on standalone basis, constituted 57% and 43%, respectively, of the Loan Book. As on September 30, 2023, the Loan Book was Rs 45,659.95 crores, on a standalone basis, and as on September 30, 2023, the Loan Book was Rs 54,340.74 crores, on a consolidated basis. They have now shifted to an asset-light business model, focusing on co-lending of loans along with banks, other financial institutions and credit funds and an increased sell down of the loan portfolio. As of September 30, 2023, they have a network of 218 branches spread across India which gives them a pan-India presence. As of September 30, 2023, they have a direct sales team of 1,745 employees, on a consolidated basis, who are 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. Company has shown declining sales and almost static net profit, and rating is 'CRISIL AA / Stable' by CRISIL Ratings Limited and 'ICRA / AA Stable' by ICRA Limited, which will be considered to have adequate degree of safety regarding timely servicing of financial obligations and low credit risk, coupon rates are also good. So we give NEUTRAL rating to this debt offer.

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