Sammaan Capital Limited, formerly Indiabulls Housing Finance Limited, is launching its NCD Tranche III in February 2025, offering investors a chance to participate in its secured debt instruments. Established in 2005, Sammaan Capital is a significant player in India’s housing finance sector, providing a range of mortgage finance services to diverse clientele. This article provides a comprehensive overview of the NCD offering, including key details, financial analysis, and investment considerations.
Company Overview and Business Model
Sammaan Capital, a non-deposit-taking housing finance company registered with the National Housing Bank (NHB), is a flagship entity of the Indiabulls Group. The company’s core business revolves around offering home loans and loans against property to salaried individuals, self-employed professionals, MSMEs, and corporates. Additionally, it extends mortgage loans to real estate developers through lease rental discounting and construction loans.
As of June 30, 2024, Sammaan Capital operated through 215 branches across India, employing 1,433 direct sales personnel. The company’s loan portfolio is diversified, with housing loans constituting 38.81% and non-housing loans 61.19% as of March 31, 2024.
NCD Tranche III Details
The NCD Tranche III, scheduled to open on February 27, 2025, and close on March 12, 2025, aims to raise Rs 300 crore with an option to retain oversubscription up to Rs 2,000 crore. Key details include:
- Security Type: Secured, Redeemable, Non-Convertible Debentures
- Issue Size (Base): Rs 300 crore
- Issue Size (Oversubscription): Rs 200 crore
- Issue Price: Rs 1,000 per NCD
- Face Value: Rs 1,000 per NCD
- Minimum Lot Size: 10 NCDs
- Listing: BSE, NSE
- Credit Rating: CRISIL AA/Stable, ICRA AA (Stable)
- Tenor: 24, 36, 60, 84, and 120 months
- Payment Frequency: Monthly, Annual, and Cumulative
- Allocation: Institutional (30%), Non-Institutional (10%), HNI (30%), Retail (30%)
- Coupon Rates: Range from 9.25% to 10.75% per annum, depending on the series and tenor.
Financial Performance
Sammaan Capital’s financial performance provides insights into its stability and growth. Key financial highlights include:
- Assets: Rs 73,066.4 crore (March 31, 2024)
- Revenue: Rs 8,624.77 crore (March 31, 2024)
- Profit After Tax: Rs 1,214.39 crore (March 31, 2024)
The company’s consistent profitability and substantial asset base indicate a strong financial position.
Strengths
- Strong Credit Ratings: “AA” ratings from CRISIL and ICRA reflect the company’s financial stability and low credit risk.
- Diversified Loan Portfolio: A mix of housing and non-housing loans mitigates risk.
- Extensive Branch Network: Wide geographical presence enhances customer reach.
- Experienced Management: Part of the Indiabulls Group, the company benefits from established expertise.
Risks
- Credit Risk: As a lending institution, Sammaan Capital is exposed to credit risk, which could lead to non-performing assets.
- Interest Rate Risk: Fluctuations in interest rates can affect the company’s profitability and asset valuation.
- Regulatory Risk: Changes in regulations governing the housing finance sector can impact operations.
- Economic Downturn: Economic slowdowns can affect the ability of borrowers to repay loans.
- Competitive Pressures: The housing finance market is highly competitive.
FAQs on Sammaan Capital IPO
Non-Convertible Debentures (NCDs) are debt instruments that cannot be converted into equity shares. They offer fixed interest payments over a specified period.
The NCDs are rated CRISIL AA/Stable and ICRA AA (Stable).
The minimum investment is 10 NCDs, amounting to Rs 10,000.
The NCDs will be listed on BSE and NSE.
Tenors range from 24 to 120 months, with coupon rates from 9.25% to 10.75% per annum, depending on the series.
The funds will be used for onward lending, financing, repayment of existing borrowings, and general corporate purposes.
Disclaimer: This information is for general knowledge and informational purposes only and does not constitute financial, investment, or other professional advice.
