9.80% IHFL NCD: Indiabulls Housing Finance NCD 2022 (December 1 to 22)

Indiabulls Housing Finance Ltd or IHFL has issued its NCD (non-convertible debentures) for retail investors and it is open from 1 December to 22 December. Here are the full details of IHFL NCD 2022.

by Sahil_Jain Updated: 07 Dec, 2022, 16:19 IST
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Owned by the Indiabulls Group, Indiabulls Housing Finance Limited is one of the leading finance companies in India. With its latest non-convertible debentures issue in December, IHFL plans to use the capital amount to further lend it to their clients, or for the repayment of their existing borrowings. And if you have had your eyes on the stock market for all this time but were worried about incurring losses, this might be the perfect chance for you. The IHFL NCD offers an interest rate of up to 9.80% on your investment and the risk of you losing your money is lesser than while trading in the stock market. Thus, investing in Indiabulls Housing Finance Limited NCD is safe, right? Well, there’s more to it than that…so let’s talk about this non-convertible debenture issue today. 

Indiabulls Housing Finance NCD December 2022

Not sure what is the IHFL NCD? No worries, we will help you with it. Non-convertible debentures are easier to understand if you think of them as a type of FD, but with higher profitability. Generally, your bank would provide an interest rate of 6-7% on a fixed deposit at most, right? Investing the same amount in a company’s NCD can increase your profit and to your surprise, the investment is less risky than investing in stocks.

But does that make investing in non-convertible debentures completely risk-free? Nope! Any NCD comes with a risk of the company in question going bankrupt. If it does, then you are less likely to get your invested amount back, forget your profits. Thus, if you plan on investing in IHFL’s NDC, there is a risk of the company going bankrupt and not being able to pay back your amount. But wait, there’s more…

Indiabulls Housing Finance Limited Non-Convertible Debentures in December 2022

The non-convertible debenture issue of Indiabulls Housing Finance Limited started on 1 December and will be open till 22 December. This NCD issue is worth ₹

Indiabulls Housing Finance Limited or IBHFL is one of the biggest financing companies in India. People who plan on buying a house or any property and are unable to get loans from banks usually find themselves getting helped by IHFL. They provide home loans at interest rates that are generally higher than banks (10-15%). Also, this is not the first time when IHFL is issuing its NCD, so this may be a familiar investment segment for many.

With its 7th debt issue in such a short period of time, IHFL’s NCD has a base size of ₹1,000 crores and a shelf issue size of ₹1,400 crores upon oversubscription. Also, the interest rate for the same ranges from 9.29% p.a. to 9.80% p.a.

IHFL NCD December 2022 Issue Full Details

The Non-convertible debentures by Indiabulls Housing Finance Limited are issued for three different time periods. We have explained them all right below:

Details

Annual

Monthly

Cumulative

Time Period

24 months

24 months

24 months

Coupon Rate

9.30%

8.94%

N/A

Effective Rate of Interest

9.29%

9.30%

9.30%


The above table shows the interest rates of the IHFL NCD for a maturity period of 24 months.

Details

Annual

Monthly

Cumulative

Time Period

36 months

36 months

36 months

Coupon Rate

9.55%

9.16%

N/A

Effective Rate of Interest

9.54%

9.54%

9.55%


Here, you can see that the same non-convertible debenture issue is available for a time period of 36 months.

Details

Annual

Monthly

Time Period

60 months

60 months

Coupon Rate

9.80%

9.39%

Effective Rate of Interest

9.79%

9.80%


With a tenure of 60 months, you only get the option to apply for the IHFL NCD issue on an annual or monthly basis.

For more in-depth information, refer to Indiabulls Red Herring Prospectus.

Indiabulls Housing Finance Limited Non-Convertible Debentures Price: Minimum Amount Required

The minimum amount required to apply for this debenture issue of IHFL is Rs 10,000. Each debenture costs Rs 1,000 and every investor must buy at least a single lot consisting of 10 debentures. Thus, the minimum investment amount for this debenture issue is ₹10,000.

The face value of each NCD is ₹1,000 which is the same as its issue price. Also, the NCD issue is available for all investors on a first-come-first-serve basis. So if you plan on applying for IHFL NCD, hurry up!

How to Get NCD? How to Buy NCD of IHFL?

Usually, you may find yourself applying for different IPOs, buying shares in the options market and even as delivery. But, buying debentures of any company is a totally new thing for you, isn’t it?
Don’t worry, the process for buying NCD is the same with your stock broker app.

You can either apply for an NCD when it is issued by the company in the primary market or, you may later trade it in the secondary market just like shares. If you are not sure which stock trading app to use for that, we recommend you download the Paytm Money app on your iPhone or Android smartphone.

Moreover, if you use Zerodha or Upstox for trading, do check out our amazing offers for you:

That’s pretty much everything you need to know about the IHFL NCD issue in December 2022. If you plan on applying for this NCD, make sure you do your own research rather than believing in some other sites/experts. Even companies like Reliance Capital, which got AA ratings from experts went bankrupt and investors had to face huge losses.

Though, one thing that might help you trust Indiabulls Housing Financeṣ Limited is that its non-convertible debentures are secured. It means that if for any reason the company is unable to pay your money back, it would try clearing off its debt by selling its assets too. This improves your chances of getting the invested amount back in such cases.

Do let us know what you think about this NCD from IHFL. Would you like to invest in it too? 

4 Comments  |  
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Deal Cadet Deal Cadet

WORST COMPANY THEY GIVE FIRST 9.8% IR  THEN THEY WILL CHARGE YOU ABOVE OR UPTO 13.95%. THIS IS SURE AND GUARANTEEE FROM MY SIDE. BECAUSE I AM SUFFERING WITH 14.88% HOUSING LOAN IR. BECAREFUL FRIENDS BEFORE TAKING LOAN FROM IHFL.

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kskanth wrote:

WORST COMPANY THEY GIVE FIRST 9.8% IR  THEN THEY WILL CHARGE YOU ABOVE OR UPTO 13.95%. THIS IS SURE AND GUARANTEEE FROM MY SIDE. BECAUSE I AM SUFFERING WITH 14.88% HOUSING LOAN IR. BECAREFUL FRIENDS BEFORE TAKING LOAN FROM IHFL.

I think there has been some kind of misunderstanding.
Here, we are talking about IHFL offering debentures at 9.80%, not a loan.
Deal Cadet Deal Cadet
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Sahil_Jain wrote:
I think there has been some kind of misunderstanding.
Here, we are talking about IHFL offering debentures at 9.80%, not a loan.

that means company is not healthy they are looting people from one side another side they are asking people to invest in their company what a joke this is😬 no misunderstanding only mis  under  standing.

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kskanth wrote:

that means company is not healthy they are looting people from one side another side they are asking people to invest in their company what a joke this is😬 no misunderstanding only mis  under  standing.

Oh okay, got it.
But then too this isn't any kind of investment. It's a loan that people may/may not give to the company.
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