Indiabulls Housing Finance Limited has announced the public issue of secured, redeemable, non-convertible debentures of the face value of Rs 1,000 each (“NCDs”). The Tranche III Issue opens on Friday, October 07, 2022 and closes on Friday, October 28, 2022. The Issue has a base issue size of Rs100 crore with an option to retain oversubscription up to Rs 700 crore, aggregating up to Rs 800 crore. The Issue offers various series of NCDs for subscription with coupon rates ranging from 8.33% to 9.55% per annum, applicable as per respective series for selected category of NCD holders. The NCDs are proposed to be listed on BSE and NSE. The NCDs have been rated “CRISIL AA/Stable” and “[ICRA]AA (Stable)”. The NCDs have tenures of 24 months (Series I, II, III), 36 months (Series IV, V, VI) and 60 months (Series VII, VIII). Effective yield (per annum) in Category I (Institutional Investors) & Category II (Non-Institutional Investors) ranges from 8.64% to 9.05% and for Category III (High Net-worth Individual Investors) and Category IV (Retail Individual Investors) holders ranges from 9.04% to 9.54%. Interest payment modes for the NCDs are Annually, Monthly or Cumulative as per the series selected by the investors.
Over 90 central banks have raised interest rates this year, with half of them hiking by at least 75 basis points in one shot. This week, Sweden at 100 basis points and the Swiss National Bank and the U.S. Federal Reserve at 75 basis points were the big ones. It had its impact on the markets as well, with global stocks declining for the fourth straight week. The question is whether the recovery seen post mid-July will now be sold into, as winter nears and rates and uncertainty around geopolitics rise. And from India’s perspective, the RBI’s decision next week assumes great significance. Here are the key talking points this week.
Indian Housing Markets Decoupled?
Soaring borrowing costs are squeezing homebuyers and property owners across the world. A Bloomberg piece noted that from Sydney to Stockholm to Seattle, buyers are pulling back as central banks raise interest rates at the fastest pace in decades, sending house prices falling. And millions of people who borrowed cheaply to purchase homes during the pandemic boom face higher payments as loans reset. India’s numbers are looking slightly different. While September, due to the Shraadh period, the monthly registrations might be weak, the first five months have each held a record of either sales or registrations in various markets. Remember, Mumbai’s August registrations were at a decadal high. And every single real estate company talks about the consolidation story while explaining the reason for the high development pipeline and robust growth projections.
Accenture’s Q4FY22 revenue growth of 22% year-on-year suggests strong growth for Indian IT firms in Q2FY23, according to Jefferies. However, Jefferies adds that a rising focus on cost optimisation, weaker hiring, and soft FY23 revenue growth guidance of 8-11% year-on-year suggests that some caution is starting to creep in. ACN noted that certain industries are facing a higher impact from inflation and are re-prioritising spending towards cost initiatives. Will this show up in the commentaries of IT companies is the key question. Do note that the sector is reeling under pressure from the drawdown of the Nasdaq (down 7% in the last one month), as well as the ownership of FIIs, which have largely been in the sell mode in 2022.
(Additional Input from PTI)