“Why to wait for the right time – Make your time right by investing in Dhani Loans IPO”
Feel the wave of capital preservation. Contact your near and dear ones. Call if you have to, but don’t miss out on the bidding of the IPO bond. Dhani Loans & Services Limited NCD IPO is all set to open the gates for investors for IPO bidding in April this year.
DHANI LOANS AND SERVICES LIMITED, is a non-deposit-taking systemically important NBFC registered with the RBI and a 100% subsidiary of Dhani Services Limited (formerly Indiabulls Ventures Limited), a listed Indian company. It provides transaction finance to its customers through an array of product offerings on the Dhani App and also provides personal loans, and secured and unsecured business loans to individuals and corporates.
The Dhani Loans & Services Limited NCD IPO has been rated “IVR AA/ Stable” by Infomerics Valuation and Rating Private Limited and provides Yield up to 11 %, up to a tenure of 36 months. All you need to do is set a reminder on the BondsIndia.com website and place your bid as we send you a reminder when it goes live.
About the NCD Issue (company stats, standings, etc.)
| Issuer | Dhani Loans and Services Limited |
|---|---|
| Type of instrument | Secured, Redeemable, Non-Convertible Debenture |
| Listing | To be listed on BSE and NS |
| Issue Size | Public issue of secured redeemable NCDs of our Company of the face value of 1,000 each aggregating up to 100 Crores, with an option to retain oversubscription up to 100 Crores, aggregating up to 200 Crores. |
| Issue Price | Rs. 1000 per NCD |
| Minimum Investment | 10 NCDs i.e., 10,000 (across all Series of NCDs) |
| Issue Opening Date | Tuesday, April 19, 2022 |
| Issue Closing Date | Tuesday, May 10, 2022, * *Issue may close on such earlier date or an extended date as may be decided by the Board of Directors of the Company or Securities Issuance Committee thereof. |
| Mode of Issuance | Dematerialized only |
ISSUE STRUCTURE
| Series | I | ** II | III | IV | V | VI | VII |
| Frequency of Interest payment | Cumulative | Annual | Cumulative | Monthly | Annual | Cumulative | Monthly |
| Minimum Application | 10000 (10 NCDs) across all Series | ||||||
| Face Value/ Issue Price of NCDs (₹/ NCD) | 1000 | ||||||
| In multiples of thereafter () | 10000 (1 NCD) | ||||||
| Type of Instrument | Secured NCDs | ||||||
| Tenure | 370 Days | 24 Months | 24 Months | 24 Months | 36 Months | 36 Months | 36 Months |
| Coupon (% per annum) for NCD Holders in Category I, II, III, and IV Investors | NA | 10.50% | NA | 10.03% | 11.00% | NA | 10.49% |
| Effective Yield (per annum) for NCD Holders in Category I, II, III, and IV Investors | 10.00% | 10.49% | 10.50% | 10.50% | 10.99% | 11.00% | 11.00% |
| Mode of Interest Payment | Through various modes available | ||||||
| Amount (₹ / NCD) on Maturity for NCD Holders in Category I, II, III, and IV Investors | 1,101.44 | 1,000 | 1,221.36 | 1,000 | 1,000 | 1,368.05 | 1000 |
| Maturity / Redemption Date (Years from the Deemed Date of Allotment) | 370 Days | 24 Months | 24 Months | 24 Months | 36 Months | 36 Months | 36 Months |
| Put And Call Option | Not Applicable | ||||||
| **The Company shall allocate and allot Series II NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series. |
Financial Performance (Rs. Crores)
| Parameters | (₹ in Crores unless otherwise stated) As at and for the year ended March 31 | ||
|---|---|---|---|
| 2019 | 2020 | 2021 | |
| Assets Under Management | ₹10,647.75 | ₹5,328.27 | ₹4,529.03 |
| Interest Income (Including Treasury Income) | ₹1,558.52 | ₹2,489.27 | ₹976.14 |
| Finance Costs | ₹628.02 | ₹857.73 | ₹458.50 |
| Impairment of financial instruments | ₹103.51 | ₹896.50 | ₹184.12 |
| Total Debts to Total assets | 63.49% | 49.90% | 42.25% |
| Interest coverage ratio (Earnings before Interest and Tax / Interest Expense) | 1.84 | 0.93 | 0.73 |
Key Strengths
- Experienced promoters backed by reputed board members
DLSL’s promoter is Dhani Services Limited (formerly Indiabulls Ventures Limited) (‘DSL’). Mr. Pinank Jayant Shah, aged 41 years, is a Whole-time Director on the Board and Chief Executive Officer of the Company. He holds a bachelor’s degree in commerce from Mumbai University and a master’s degree in management studies (Finance) from Jamnalal Bajaj Institute of Management Studies. He has over 18 years of experience in retail lending, corporate lending, and fundraising.
He is also one of the Executive Directors of the parent company DSL. All the remaining board members are also well qualified and have vast experience in their respective fields and contribute significantly to the overall growth of the Company. The company shall benefit from the strong experience of its professional management team which will enable them to scale up its operations while managing the risks inherent in this type of business.
- Comfortable capitalization and strong resource-raising ability
DLSL has comfortable capitalization primarily supported by steady capital infusion from the promoter group. The Company’s Tangible Net Worth stood at INR 4263.37 Crore as of H1-FY21 against INR 4183.52 Crore as of March 31, 2020. DLSL has been able to obtain continuous funding support from its promoters as well as investors. During the six months ended 30-Sep-2020, the Company has issued & allotted NCDs (privately placed) worth INR 500 Crore.
Considering the scale of operations as of March 31, 2020, the company is well capitalized with a CAR (%) of 58.92%. Also, it has adequately matched its asset-liability profile as of September 30, 2020
- Strong linkage & support from the Promoters
Dhani Loans & Services Limited is a wholly-owned subsidiary of Dhani Services Limited (DSL) (Formerly Indiabulls Ventures Limited). Dhani Services Ltd. is a consumer business that operates through its app ‘Dhani’ and provides digital healthcare and digital transactional finance to its customers.
The equity shares of DSL are listed on NSE and BSE and its Global Depository Receipts are listed on the Luxembourg Stock Exchange. DSL has raised multiple rounds of capital through the placement of its equity shares to specialist tech-enabled investors. The last round of such capital was a raise of 80 mn USD in Sep/Oct 2020. During FY19, the Holding Company (DSL) infused equity capital of INR 2,302.75 Crore into DLSL.
- Improved Gearing parameters
The Overall Gearing ratio has improved significantly from 1.75x as of FY19 to 1.14x as of FY20 & further to 0.94x as of half-year ended Sep-20, as the borrowings reduced over the years.
- Improved operating income parameters
The Company’s interest income has increased by almost 20% in FY20 from FY19. The Net Interest Margin (NIM) has seen improvement given the increase in Net Interest Income while having a moderate level of loan book as of March 31, 2020. The NIM was 12.51% in FY19, which improved to 13.89% in FY20.
Credit Risks
- Reduction in the loan portfolio
The decline in the loan portfolio is due to the sale of loan assets by way of Assignment, subsequently resulting in the de-recognition of such assets from the books of the Company. The gain on the sale of the loan portfolio through assignment amounted to INR 616.69 Crore in FY20.
The Company has also securitized its loan assets to unrelated entities. These loan assets are not derecognized and proceeds received are presented as other financial liability. The own book portfolio reduced from INR 10,633 Crore (AUM – INR 11,228 Crore) as of FY19 to INR 4,710 (AUM – INR 9,626 Crore) as of FY20.
- Moderate Asset Quality
A decline in the loan portfolio is due to the sale of loan assets by way of Assignment, subsequently resulting in the de-recognition of such assets from the books of the Company. The gain on sale of the loan portfolio through assignment amounted to INR 616.69 Crore in FY20.
The Company has also securitized its loan assets to unrelated entities. These loan assets are not derecognized and proceeds received are presented as other financial liability. The own book portfolio reduced from INR 10,633 Crore (AUM – INR 11,228 Crore) as of FY19 to INR 4,710 (AUM – INR 9,626 Crore) as of FY20.
- Impact of COVID-19 global pandemic
The decline in the loan portfolio is due to the sale of loan assets by way of Assignment, subsequently resulting in the de-recognition of such assets from the books of the Company. The gain on the sale of the loan portfolio through assignment amounted to INR 616.69 Crore in FY20. The Company has also securitized its loan assets to unrelated entities.
These loan assets are not derecognized and proceeds received are presented as other financial liability. The own book portfolio reduced from INR 10,633 Crore (AUM – INR 11,228 Crore) as of FY19 to INR 4,710 (AUM – INR 9,626 Crore) as of FY20.
How to invest in Dhani loans and Services NCD IPO April 2022
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Place your bid in three simple steps
| Key in Basic Details> | Choose the IPO Series> | Place the bid |
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How to invest in Dhani Loans & Services Ltd in April 2022?
The application process on the Bonds India platform is simple and seamless.
- Click on Apply Now on Dhani Loans & Services Limited NCD IPO Page.
- Fill in the Application form with the basic details such as name, email address, mobile number, Pan details, bank, and Demat details).
- Then, confirm the quantity and price and select a payment method.
- That’s all folks bidding complete!