Sammaan Capital Ltd · NSE:SAMMAANCAP
Sammaan Capital — Indiabulls Housing Finance — Debt Investor Presentation (March 2024)
24 slides from Sammaan Capital's debt investor presentation, Mar 19, 2024
Slide 1: Indiabulls Housing Finance Investor Roadshow Presentation
Indiabulls Housing Finance Investor Roadshow Presentation March 2024
Slide 2: Disclaimer
Disclaimer NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO THE UNITED STATES OR TO U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”), EXCEPT TO “QUALIFIED INSTITUTIONAL BUYERS” (AS DEFINED IN RULE 1
Slide 3: Presenters
Presenters Mr. Gagan Banga Vice Chairman, Managing Director and CEO • Mr. Banga has over 20+ years of experience in the business of NBFCs and HFCs • Prior to joining Indiabulls Housing Finance Limited, He was an Executive Director on the Board of Directors of IBFSL (Indiabulls Financial Services Lim
Slide 4: Contents
Contents 1. Company overview 6 2. Recent developments 9 3. Industry overview 12 4. Key credit highlights 15 5. Financial summary 23 4
Slide 5: Transaction summary
Transaction summary Issuer • Indiabulls Housing Finance Limited (“IHFL”) Issue • Fixed rate, Senior Secured US$ bonds Issuer Rating • S&P rating to follow Expected Issue rating • S&P rating to follow Issue Amount • Benchmark Tenor • 3.25 yrs bullet Coupon • [ ]% p.a. payable semi-annually • The fina
Slide 6: Section 1: Company overview
Section 1 Company overview 6
Slide 7: Company Overview
Company Overview Key highlights (as of 31 Dec 2023) Loan Book split (as of 31 Dec 2023) c. US$1.3bn(1) 23.1% 3.9% Market Capitalization Standalone CRAR Net Interest Margin 217 branches 4,793 employees 8,763 direct sales agent Housing loans Non-Housing loans 49.7% 50.3% Long Term Ratings Short Term R
Slide 8: Focus on scaling up the retail asset-light business model
Focus on scaling up the retail asset-light business model Co-Lending Sell-Down Approach Collaboration with 8 banks and financial institutions for Operational sourcing home loans and secured MSME loans arrangements Securitize or directly assign loan receivables to banks and other institutions for rai
Slide 9: Section 2: Recent developments
Section 2 Recent developments 9
Slide 10: Recent developments: Completion of rights issue
Recent developments Completion of rights issue of INR36.9bn Completion date ꟷ Feb-24 Key terms of the rights issue Issue size ꟷ 246,226,515 partly paid-up equity shares of face value of INR 2 each Price per equity share ꟷ INR 150 per equity share (including a premium of INR 148 per equity share) Agg
Slide 11: Ratings Actions
Ratings Actions Rating Driven by Strong Business Profile and Liquidity Rating Action: Reaffirms Indiabulls’ AA/Stable/A1+ ratings Rating Action: Reaffirms Indiabulls’ AA; Stable (Dec-23) S&P rating to follow (Jan-24) The reaffirmation reflects Indiabulls’ established franchise in The reaffirmation r
Slide 12: Section 3: Industry overview
Section 3 Industry overview 12
Slide 13: Abundant opportunities for growth in the mortgage finance market
Abundant opportunities for growth in the mortgage finance market, supported by secular growth drivers Low housing penetration in India provide abundant opportunities for growth in mortgage finance Nominal GDP to Housing (India) Opportunity in mortgage penetration (global penetration) 83% 68% 56% 52%
Slide 14: HFC Sector is an Integral Part of India's Credit Market
HFC Sector is an Integral Part of India’s Credit Market GNPAs of housing portfolio to improve by another ~40bps this Housing loans expected to show double digit growth fiscal Housing loans at NBFCs/HFCs GNPA of housing portfolio at HFCs 8.00 13.5% 3.0% 12.2% 2.4% 7.00 12.0% 2.5% 2.2% 2.1% 6.00 9.6%
Slide 15: Section 4: Key credit highlights
Section 4 Key credit highlights 15
Slide 16: Key credit highlights
Key credit highlights Strong financial Access to One of the largest pan performance diversified India HFCs with wide and consistent funding sources geographic reach profitability 1 2 3 Domain expertise built over time Effective use of Experienced Board of resulting in a technology Directors and Seni
Slide 17: One of the largest pan India HFCs with wide geographic reach
One of the largest pan India HFCs with wide geographic reach Wide geographic reach with 217(1) branches across 19 states in India Third largest HFC in terms of assets under management in FY23 FY23 AUM (Rs billion) 2,750 1 12 1 6 692 670 666 22 10 486 316 316 285 220 172 142 32 26 Housing Housing Hou
Slide 18: Strong financial performance and consistent profitability
Strong financial performance and consistent profitability NIM on Average Assets Total Debt to Total Assets (as of period ending) 74.9% 3.7% 3.9% * 73.8% 69.9% 3.0% 3.0% 65.8% FY21 FY22 FY23 9MFY24 (1) FY21 FY22 FY23 9MFY24 (1) Gross and Net NPA (as of period ending) Capital Adequacy ratios (as of pe
Slide 19: Access to Diversified Funding Sources
Access to Diversified Funding Sources Diversified Funding Mix… …with ready access to Debt and Equity Capital Markets Lease Liability 0.5% Listed for more than 19 years NCD & Other debt instruments Raised INR36.9bn through a rights issue in Feb-24 41.4% Banks & financial institutions Raised US$315m S
Slide 20: Domain expertise built over time resulting in a resilient business model
Domain expertise built over time resulting in a resilient business model Over 17 years of experience in Loan against Property, with demonstrated portfolio performance across business cycles Caters to self-employed Loans secured against Centralized credit analysis High collection efficiencies individ
Slide 21: Effective use of technology
Effective use of technology Offline Sourcing Online Sourcing In-house Sales Team Direct Selling Agent Builder Relations Channels Website Mobile App Corporate Tie-ups Cold calling Reference / Walk-ins Web Aggregators Events / Exhibitions Appointment Login and - Basic eligibility check Lead generation
Slide 22: Experienced Board of Directors and Senior Management team
Experienced Board of Directors and Senior Management team Subhash Sheoratan Mundra Satish Chand Mathur Non-Executive Chairman, Independent Director Independent Director Mr. Mundra is a seasoned and accomplished banker with Mr Mathur was the Director General of Police, distinguished career spanning o
Slide 23: Section 5: Financial summary
Section 5 Financial summary 23
Slide 24: Key financial highlights
Key financial highlights Loan Book (US$m) Profit after tax (US$m) 9,232 8,124 6,934 6,728 163 155 137 108 FY21 FY22 FY23 9MFY24 FY21 FY22 FY23 9MFY24 Return on Average Assets (after tax) Return on Average Net Worth 7.6% 1.6% 1.3% 1.4% 1.2% 7.2% 6.7% 6.7% FY21 FY22 FY23 9MFY24 * FY21 FY22 FY23 9MFY24
Indiabulls Housing Finance — Debt Investor Presentation (March 2024) on 6ix