DHFL

Non- Convertible Debentures 2018

Group 2

By-
Grp-10
Aditi pawar 20192201
Nupur Singh 20192331
Diksha Pandey 20192317
Subham paul 20192254
PARTHA SARADHI 20192234
Saravana Kumar D I 20192342
Kratik Gehlot 20191051
 DHFL
About
Dewan Housing Finance Corporation Ltd. (DHFL) is a deposit-
taking housing finance company.
Founded : 11 April 1984; 36 years ago
Headquarters: Mumbai, India
VISION:
to transform the lives of Indian households by enabling access to
home ownership.
MISSION:
To understand our customers’ inner needs and speak their
language
 DHFL NCDs 2018
Key Features
◎ Debenture is a type of Debt instrument which offers a fixed rate of
interest for a specified tenure.

◎ Debentures are of two types Convertible and Non-Convertible.

◎ NCD can be Secured or Unsecured

◎ It provides secured finance primarily to individuals, partnership

firms and companies.

◎ It also provides certain categories of non-housing loans .

◎ It focuses on providing financing products for the Low and Middle

income (LMI) segment in India .
 Particulars DHFL's NCD (May 2018) Issues
Tenor 3 years 5 years 7 years 10 years 3 years
Frequency of
Interest
Payment  Annual Monthly Annual Monthly Annual Annual Annual
Interest type Fixed Floating
Type of NCD Secured

Coupon (%) for Benchmark

NCD Holders in MIBOR +
Category I & spread of
Category II 8.90% 8.56% 8.90% 8.56% 8.90% 8.90% 2.16%*

Benchmark
Coupon (%) for MIBOR +
NCD holders in spread of
Category III 8.90% 8.56% 9.00% 8.65% 9.00% 9.00% 2.16%*

Benchmark
Coupon (%) for MIBOR +
NCD holders in spread of
Category IV 8.90% 8.56% 9.00% 8.65% 9.00% 9.10% 2.16%*
Put and call
option - - - - - - -
 Categories of Investors
Category I Investor • Public financial institutions, scheduled commercial banks, Indian multilateral and
bilateral development financial institution which are authorized to invest in the NCDs;
• Provident funds, pension funds with a minimum corpus of `2,500 lakh, superannuation funds and gratuity funds,
which are authorized to invest in the NCDs;
• Insurance Companies registered with IRDA; State industrial development corporations;
• Insurance funds set up and managed by the army, navy, or air force of the Union of India;
• Insurance funds set up and managed by the Department of Posts, the Union of India;
• Systemically Important Non-Banking Financial Company, a nonbanking financial company registered with the
Reserve Bank of India and having a net worth of more than `50,000 lakh as per the last audited
financial statements;
• National Investment Fund set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of the
Government of India published in the Gazette of India
Category II Investor • Companies within the meaning of section 2(20) of the Companies Act, 2013; statutory
bodies/ corporations and societies registered under the applicable laws in India and authorized
to invest in the NCDs;
• Co-operative banks and regional rural banks;
• Public/private charitable/ religious trusts which are authorized to invest in the NCDs; Scientific and/or industrial
research organizations, which are authorized to invest in the NCDs;
• Partnership firms in the name of the partners; Association of Persons; and
• Any other incorporated and/ or unincorporated body of persons.
Category III Investor • Resident Indian individuals or Hindu Undivided Families through the Karta applying
for an amount aggregating to above ` 10 lakh across all series of NCDs in Tranche 1 Issue
Category IV Investor • Resident Indian individuals or Hindu Undivided Families through the Karta applying for
an amount aggregating up to and including ` 10 lakh across all series of NCDs in Tranche 1
DHFL NCD Issue ( FY 2018-19) Details
 NCD Issue opening Date : 22nd May, 2018
 Issue Closes on : 4th June, 2018.
 Interest Rate or Coupon Rate on NCDs : The ROI ranges from 8.56% to 9.10% depending on the
category of investor and tenure of the NCDs.
 Issue Size : Base Issue size is Rs 3,000 cr (with an Option to retain over-subscription amount up to
Rs 9,000 Crores. Total Issue size Rs 12,000 cr).
 Mode of Issue : Demat & Physical form.
 Face Value or Issue Price of one NCD is Rs 1,000.
 Available Tenor options : 3 years to 10 years
 Type of Interest Payment : Fixed & Floating (for NCDs with 3 year tenure).  The Floating Interest
rate is determined as : Benchmark MIBOR + spread of 2.16%. The current MIBOR rate is around
6%.
 Frequency of Interest payment : Annual / Monthly. Cumulative option is not available under this
Issue.
 Minimum Application size : Rs 10,000 (10 NCDs) and in multiple of Rs 1,000 thereafter.
 Listing : The NCDs are proposed to be listed on BSE & NSE stock exchanges.
 Issue Allocation Ratio : 65% of the Issue is for individual investors (HNIs – individuals (applying
for an amount of > Rs 10 lakh).
 PUT & Call options : No Put & Call options are available.
 Allotment of NCDs is on ‘first come, first served’ basis.
 NRIs are not eligible to apply to this NCD issue.
 The retail investors who are Senior citizens applying, are eligible for an additional incentive of
0.10% p.a. provided the NCDs issued are continued to be held by such investors on the relevant
Record Date applicable for payment of respective coupons.
 How to Buy DHFL NCD 2018 Bonds
◎ DHFL NCD Issue opened on May 22, 2018 with a AAA/Stable rating from
Outlook, CARE, Brickwork offering a coupon rate of up to 9.10*%(Depending
upon the selected tenure-3,5,7,10 years) With Face Value of 1000/- each.
◎ Current Rating: CARE-D hence the discounted price. Note: one cannot buy unless
there are sellers available and the offer price is met/trigerred.
◎ The minimum application is 10 NCD’s (Multiples of *1 after Min).
◎ The Bond can be purchased from any trading (CM) platforms(Zerodha,
AngleBroking, Upstock) with Demat Account.
◎ Symbol: DHFL-NQ/DHFL-9.10%-4-6-28-NCD is currently priced at 348.19/-
(Heavily Discounted Price) (with Min Purchase order of 3,600/-[348.19*10])
coupon rate of 9.10% every year 04th June till Maturity at 04 Jun 2028. or any
price can be offered.
◎ Link: https://www.nseindia.com/get-quotes/bonds?symbol=DHFL
 CONCLUSION
• It's a provision of the ITA that is a win-win for both individuals and the
nation.
• The objective of this section is to encourage investments in
infrastructure projects across the country while helping taxpayers reduce
the taxes they pay.
• Section 80CCF offers tax-saving benefits with the maximum deduction
amount being Rs 2000 that can be claimed under this section.
• Following people are eligible for the deductions :
1. Indian citizens
2. Individuals
3. Hindu Undivided family
4. Joint investors
• Minimum amount required is 5000
• Buy back option was available after 5 and 7 years.