Indiabulls Housing Finance offers premature redemption of NCDs maturing until March 31, 2024

Indiabulls Housing Finance Ltd. has announced its offer for the early redemption of Non-Convertible Debentures (NCDs) maturing by March 31, 2024. The company's Asset Liability Management Committee (ALCO) has opted to extend this offer to NCD holders, with the intention of acquiring these NCDs through negotiated trades and retaining them as treasury stock until maturity.

 

This offer is open to all Debenture holders with NCDs maturing up to March 31, 2024, with negotiations taking place between the company and the NCD holders.

 

Highlighting the company's strong financial position, it's worth noting that Indiabulls Housing Finance has repaid approximately ₹1,64,000 crore on a gross basis and ₹85,500 crore on a net basis since September 2018. As of the end of September, the company's borrowings amounted to around ₹35,000 crores, and its net debt-to-equity ratio stood at 1.7x.

 

Indiabulls Housing Finance also underlined its proactive approach to Asset Liability Management (ALM), using liquidity from its balance sheet to pre-pay or repurchase outstanding debt, as demonstrated in this offer.

 

The company provided examples of its previous proactive ALM management, including the early repurchase of NCDs and bonds, creating earmarked FDs ahead of repayment dates, among other measures, totaling ₹11,852 crores.

 

Additionally, they emphasized their asset-light model and co-lending partnerships with various banks. These strategic relationships significantly contribute to their total disbursals. The asset-light co-lending approach allows the company to grow without incurring excessive ALM risk.

 

Indiabulls Housing Finance also mentioned its focus on nurturing Public Issuances of NCDs aimed at retail investors, considering them a stable source of borrowings. Despite experiencing growth in disbursals, the company remains steadfast in its commitment to proactive ALM management to sustain its financial stability and liquidity.

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