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Indiabulls Commercial Credit Limited NCD Review

Indiabulls Commercial Credit Limited NCD Review pic

The non-banking financial company Indiabulls Commercial Credit Limited (In short ICCL) was incorporated in the year 2006. The company is classified as a non-deposit taking systematically important company too. The company has achieved its expertise in mortgage-based financing. The business emphasizes self-occupied residential properties for collateral, loans for productive business deployment, this aimed to provide help to small business owners and their plans. Indiabulls commercial credit ltd works as an entirely owned subsidiary of Indiabulls Housing Finance Ltd. In this article, you will get the whole view of the fundamental details of the company. The focus point is on Indiabulls Commercial Credit Limited NCD Review.

About Indiabulls Commercial Credit Ltd NCD Issue Details

  • The issue opens on- Sep 11, 2018
  • The issue close on- Sep 28, 2018
  • Issue Type: Fixed Price Issue NCD
  • Face value: Rs. 1000 Per NCD
  • Issue size: NCD’s of Rs. 1000
  • Issue size: Rs. 2,000.00 Crore
  • Issue price: Rs. 1000 Per NCD
  • Market lot: 1 NCD
  • Listing At: BSE, NSE
  • Minimum order quantity: 10 NCD
  • DRHP: Click here

Purpose of Issuing NCD

  • Main objectives of issuing NCD are financing, lending, payment of interest and principal of the company’s borrowings.
  • The general corporate purpose is also another purpose of this.
  • Provide the facility to enhance the brand name along with company image.
  • Without raising the share capital, the company needs to raise its fund soon.
  • In contrast to the convertible debentures, NCD (Non-Convertible Debentures) offers a higher interest rate.

About Indiabulls Commercial Credit Limited

  • The non-deposit taking NBFC is a Mumbai based company, focus primarily on long-term secured mortgaged backed loans.
  • The company offers loans mainly to Small and Medium Enterprises (SME) along with salaried and self-employed individuals.
  • In the form of lease rental discounting, the NBFC company offers mortgage loans to real-estate developers. These loans are for construction finance, commercial premises, construction of residential premises.
  • Indiabulls has a huge employee retention, more than 3500 employees.
  • The company’s mortgage loans constitute 98.21% of asset under management (AUM) as per the financial year 2018.
  • Among the company’s diversified lender base there are private banks, pension funds, provident funds, mutual funds. PSU.
  • ICCL has offices across Tier 1, Tier 2, Tier 3 cities.

Financial Products

In the section on lending and other financial products, there are loans against property as well as corporate mortgage loans. The mortgage loans comprised of loans against property and corporate mortgage loans. This constituted 98.21% of their AUM.

Loans Against Property

The company offers loans against property mainly to self-employed individuals, proprietorships and small business. The loans are provided for business expansion or working capital requirement, secured by mortgages.

Corporate Mortgage Loans

Through corporate mortgage loans, the company offers finance to real estate developers. Corporate mortgage loans are available through two broad structures such as Residential Construction Finance and Lease Rental Discounting Loans. The Lease loans are mainly for commercial properties.

Under Residential construction finance, the followings are included:

  • Construction of the residential projects.
  • The lands and the housing units.

Lease loan is provided against hypothecation of the rental receivables.

Registered Office

M-62 & 63, First Floor, Connaught Place,
State-New Delhi – 110 001, India.

Corporate Office:
“Indiabulls House”,
Tower I, 17th Floor, Indiabulls Finance Centre, S. B. Marg, Elphinstone Road,
Located at Mumbai 400 013

Company Management

Chairman, NonExecutive Director

Mr. Ajit Kumar Mittal

Managing Director

Mr. Ripudaman Bandral

Non-Executive Director

Mr. Anil Malhan
Mrs. Priya Jain

Independent Director

Mr. Prem Prakash Mirdha
Mr. Shamsher Singh Ahlawat

Key Strength of the Company

Here are the key strengths of the company. The strengths are described below:

  • One of the fast-growing NBFCs in India. The company performs a strong financial performance along with capitalization and credit ratings.
  • Access to diversified as well as cost-effective funding sources.
  • Support from a strong parent, operational and business linkages.
  • Prudent credit and processes leading in order to improved asset quality.

Company Strategies

Indiabulls acquires various unique strategies, among them, some of them are given below:

  • Leverage their financial strength and improve ratings in order to raise competitiveness. This helps to diversify their funding mix as well as reduce the funding costs.
  • They highly maintain prudent risk management policies. This risk management is taken for their AUM (Asset Under Management).
  • In order to improve customer reach and operating efficiency, there is leverage on technology.
  • Apart from the above strategies, there are analytics-driven customer prospecting.

Financial Statement of the Company

Let’s move on to the financial statement of the company. The company prospectus states balance sheet, profit-loss, cash flow statements. Among them, we here attach the PL statement before analyzing Indiabulls Commercial Credit Limited NCD Review. The statement is attached below:

indiabulls commercial credit limited ncd review

Indiabulls Commercial Credit Limited NCD Review

Have a look at the above attachment for analyzing Indiabulls Commercial Credit Limited NCD Review. In the above attachment, you get the entire profit-loss statement of the company. The statement includes income, expenses, tax amount. As you can see, the last financial year 2017-18 profit is quite higher than the previous years. According to the FY 18, the profit is 254.90 Cr. As the last year profit grows is an abrupt way, the question of the validity of data may arise.

Now, let’s see the fundamental details of the company. All the details are taken from the prospectus of the company, refers as draft red herring prospectus. Basic Earnings per Share (in short EPS) stands at 54.70 and diluted 37.11 as per the financial year 2018. Here, apart from EPS, P/E ratio, RoNW are not available in this prospectus. Still, based on the above data, Indiabulls Commercial Credit Limited NCD Review carries a NEUTRAL view. It is advisable to check the validity of the data twice. Otherwise, apply at your own risk.

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