Thu 12/23/2021 03:01 AM
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Indiabulls Housing Finance is in talks with Davidson Kempner Capital Management to raise INR 10 billion ($132.6 million) and in separate talks with Edelweiss Group to raise INR 6 billion through the issue of pass-through certificates (PTCs) backed by a portfolio of home loans and loan against properties (LAP), according to two sources with knowledge.

The pricing of the PTCs is still in the works, the sources said. The new investors will be the senior holders in the structure, while Indiabulls Housing Finance will be subordinated, the sources said.

In October, Davidson Kempner Capital Management completed the purchase of INR 27.80 billion PTCs backed by loan against properties (LAP) and housing loan receivables originated by Indiabulls Housing Finance and its wholly-owned subsidiary Indiabulls Commercial Credit Ltd (ICCL) at an internal rate of return of 12.10%, as reported.

Indiabulls plans to raise INR 50 billion via loans securitization, both through the direct assignment and pass-through certificates (PTC) in the financial year ending March 31, 2022, as reported.

Last week, Indiabulls Housing Finance promoter Sameer Gehlaut sold 11.9% of his shares in the company through his promoter companies, reducing his stake to 9.8%, and is expected to resign from the board by March 31, 2022, as reported.

Edelweiss declined to comment. Indiabulls Housing Finance, Davidson Kempner did not respond to requests for comment.

Indiabulls Housing Finance corporate structure is below.
 
Indiabulls Housing Finance
 
03/31/2021
 
EBITDA Multiple
(INR in Millions)
Amount
Maturity
Rate
Book
 
Term Loans
229,081.4
 
 
 
Cash Credit Facility
23,650.0
 
 
 
Working Capital Loans 1
51,730.0
 
 
 
Debentures 2
302,190.7
 
 
 
Securitisation Liability
33,222.6
 
 
 
Total Secured Debt
639,874.7
 
 
Subordinate Papers 3
45,781.1
 
 
 
Subordinated Non-Convertible Perpetual
1,000.0
 
10.600%
 
Total Unsecured Debt
46,781.1
 
 
Total Debt
686,655.8
 
 
Less: Cash and Equivalents
(131,241.6)
 
Net Debt
555,414.2
 
 
Plus: Market Capitalization
66,426.0
 
Enterprise Value
621,840.2
 
 
 
Liquidity
Plus: Cash and Equivalents
131,241.6
 
Total Liquidity
131,241.6
 

Notes:
1. On demand
2. Interest rate is in range of 0%-11%; Maturity through 2029
3. Interest rate is in range of 0%-11.85%; Maturity through May 2028
 
 
 
-- Dipika Lalwani
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