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business | IST

Indiabulls Housing Fin to raise Rs 1,000 crore via NCDs; expects 15-20% AUM growth from FY23

Indiabulls Housing Finance has issued non-convertible debentures (NCDs) worth Rs 1,000 crore. Gagan Banga, vice chairman and managing director, discussed this further.

Indiabulls Housing Finance has issued non-convertible debentures (NCDs) worth Rs 1,000 crore. Gagan Banga, vice chairman and managing director, discussed this further.
The coupon range for this particular issue is roughly from about 8.5-9.75 percent depending on the tenor and the instrument, he said.
“We are looking at doing a public issue after about three years. We were large participants in the public issue space, we had raised close to about Rs 9,000 crore till 2018 through this space. Last three years were tough for non-banking financial companies (NBFCs). We thought this is the appropriate time to get back to the market,” he added.
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According to him, demand in home loans has been strong. “Demand is pretty clearly strong for home loans. Most of the top developers are continuing to report record sales, registrations are also high across the country. For Indiabulls Housing specifically, the mid-income group is very important for our home loan product segment and that is showing a lot of demand. I haven’t seen such demand in the last 15 years,” Banga mentioned.
He believes the demand in real estate sector is sustainable. “In our view, this demand is certainly sustainable for at least next 6-8 years,” he said.
Banga is optimistic of reaching Rs 500-600 crore of per month target via co-lending before March 2022.
He expects to see assets under management (AUM) growth of 15 percent FY23 onwards. “We should be able to grow our AUM year-on-year (YoY) by about 10 percent. We expect AUM growth on a net basis to start from the second half of the year and for the full year to get us to about 10 percent and from next year, we should be growing our AUM between 15 percent and 20 percent,” he explained.
For the full interview, watch the accompanying video.