Transcript This Presentation

12.15% p.a. yield
with
Monthly Interest
Secured against Home, Mortgage
receivables
Public Issue Opens on
December 12, 2013
Public Issue of Secured Redeemable
Non-Convertible Debentures
This presentation is only for information purpose and not solicitation for
investment. For investment decisions, please refer to Prospectus
Please read disclaimer in this presentation
Why invest in IIFL Home Bonds?
India Infoline Housing Finance Limited (IIHFL)
Loans
 IIHFL is a Housing Finance Company
registered with National Housing Bank (NHB)
Housing
Loans
Loans Against
Property
 A wholly owned subsidiary of India Infoline
Finance Limited (IIFL)
Finance for
purchase of flats
Working capital
Requirements
Construction of
houses
Business Use
Extension and
improvement in
flats / homes
Acquisition of
new property
Acquiring plots
of land
Financing
construction
projects
 Lending products include Mortgage Loans,
which includes Retail Mortgage Loans and
Corporate Mortgage Loans
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Why invest in IIFL Home Bonds?
Invest at an attractive yield of 12.15%* p.a. and
Monthly Interest
 11.52% p.a. coupon with Monthly income
 Bonds are fully secured and carry maturity of 5 years
 No Call & Put Option available, which means company cannot prematurely redeem the
bonds and the interest rate offered remains fixed
 Interest on application money on the amount allocated at the rate of 11.52% p.a.
 Minimum application size as low as Rs10,000
 Minors can apply
* Assuming re-investment rate @11.52% p.a., monthly compounded
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Why invest in IIFL Home Bonds?
Rating indicates high degree of safety and very low
credit risk
 ‘CRISIL AA-/Stable’ by CRISIL
 ‘CARE AA-’ by CARE
 Stable rating for the maiden public issue of Bonds for 5 years stands testimony to
IIFHL’s robust business model
 Indicates high degree of safety regarding timely servicing of financial obligation
 Such instruments carry very low credit risk
 Highly rated for short term debt as well: ‘CRISIL A1+’ by CRISIL and ‘[ICRA]A1+’ by
ICRA
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Why invest in IIFL Home Bonds?
Bonds are secured and classified as senior debt
 IIFL Home Bonds are fully secured against home and mortgage receivables
 These Bonds enjoy repayment preference over unsecured creditors as well as preference and
equity capital
 Loan to value (LTV) ratio for the loan book conservative at 50.2 % as on September 30, 2013
 Security is entrusted with an independent trustee (IDBI Trustee). Interest servicing is also
monitored by them
Besides, 100% of the loan book is secured
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Why invest in IIFL Home Bonds?
Credible Board, Chaired by ex-Chairman of National
Housing Bank (NHB), the regulator for housing finance
S Sridhar
Non-Executive
Director &
Chairman
l
Former
Chairman,
Central Bank of
India and NHB,
Former Executive
Director, Exim
Bank and SBI
Nirmal Jain
Non-Executive
Director
l
Founder &
Chairman, IIFL
Group, CA, Cost
Accountant,
PGDBM (IIMA)
R Venkataraman
Non-Executive
Director
l
Co-Promoter &
MD, IIFL Group,
B.Tech (IIT
Kharagpur),
PGDBM (IIMB)
Mukesh
Kumar Singh
Non-Executive
Director
l
MBA (Welingkar
Institute),
Mechanical
Engineer
R Mohan
Non-Executive
Director
l
CA, Former GM
at SEBI, Formerly
at Carborundum
Universal Ltd
Kranti Sinha
Independent
Director
l
Former Director
and Chief
Executive of LIC
Housing Finance
Ltd., Dty.
President,
Insurance
Institute of India
The Board has rich and varied experience in the banking and finance
sector and has an impeccable track record
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Why invest in IIFL Home Bonds?
IIFL Group’s Advisory Board comprises stalwarts with
long and immaculate careers
Ashok Jha
l
Retired IAS,
Former Finance
Secretary, Former
Secretary, DEA
and DIPP
Keki Mistry
l
Vice Chairman &
CEO, HDFC Ltd.,
Board member ,
IL&FS, BSE
Limited, Sun
Pharmaceuticals
Industries Limited
among others
Satpal Khattar
l
Founder, Khattar
Wong & Partners,
Chairman,
Singapore
Business
Federation,
Awarded Padma
Shri in 2011
Keki Dadiseth
l
Former Chairman
of Hindustan
Unilever Limited
& former Director
Unilever Plc.
Somasekhar
Sundaresan
l
Partner M/s J
Sagar Associates,
Permanent invitee
to the executive
committee of
FICCI
S
Venkatachalam
l
Chairman, Oracle
India, Career
banker with Citi
bank, Central
Board Member,
SBI,Canara
Robeco AMC
among others
They are luminaries from complimentary fields to guide the Company
on strategy on key challenges and opportunities
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Why invest in IIFL Home Bonds?
Robust credit process
 Conservative lending policy: 65% of value of property for LAP and up to 90% for
home loans
 Three credit bureau memberships in India – CIBIL, Experian and Equifax
 Fraud control application system ‘Hunter’ for identifying fraudulent borrowers at
the application stage
 Credit and financial background check on each borrower and provide legal and
technical evaluation of security
 Audit function reports independently to the Board. All loans go through an audit
process at a transaction level
 External collection agencies are selected based on their prior experience, reputation
and market references
Since inception, IIHFL has been providing only secured finance
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Why invest in IIFL Home Bonds?
High growth with margin of safety and stable asset
quality
 IIHFL operating income and PAT witnessed CAGR of 95.6% and 92.6% respectively from
FY10-FY13
 IIHFL’s net NPA stood at negligible 0.22% at the end of FY13
 Capital adequacy at 49.4% as on Sep ‘13 is significantly higher than regulatory requirement
of 12%
IIFL* has a diversified lending portfolio
IIFL’s loan book (IIHFL’s Parent)
10,000
• Mortgages
• Gold Loans
• Commercial Vehicle Finance
• Healthcare Finance
• Capital Market Finance
(Rs cr)
8,000
9,375
9,935
FY13
H1 FY14
6,746
6,000
3,289
4,000
2,000
956
1,627
0
*IIFL
is the holding company of IIHFL (the Issuer) and is RBI
registered systemically important non-deposit taking NBFC.
FY09
Source: Prospectus
FY10
FY11
FY12
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Why invest in IIFL Home Bonds?
Leverages on the strong parentage and brand recall
of the India Infoline Group
Diversified financial services company with
a pan-India presence
Distribution network across 3,500 business
locations in over 800 cities
Consumer Finance
Wealth Management
Retail financial product
distribution
Listed on BSE and NSE
Well established brand among retail,
institutional and corporate investors
Brand associated with trust, knowledge,
leadership and high quality services
Global footprint: New York, London,
Geneva, Hong Kong, Singapore, Dubai,
Mauritius, Colombo
Capital Market Advisory
Institutional Equities
Investment Banking
India Infoline Ltd holds 98.87% in IIFL (India Infoline
Finance Ltd), the NBFC subsidiary. IIFL owns 100% of
IIHFL
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Why invest in IIFL Home Bonds?
Group’s listed holding company has consistent track
record of profit and dividends since listing in 2005
Growing and diversified revenue base
3,000
2,665
(Rs cr)
All-time high profit in FY13
300
240
2,400
Half year
1,800
1,360
120
600
60
0
130
0
FY05
FY06 FY07
FY08
FY09
FY10
FY11
FY12
FY13
H1
FY14
Healthy return on equity
FY05
2,200
15.0
14.9
13.1
10.4
FY07
FY08
FY09
FY10
FY11
FY12
FY13
H1
FY14
1,959
1,754
1,800
8.0
1,605
1,600
4.0
1,400
0.0
2,111
(Rs cr)
2,000
8.0
FY09
FY10
FY11
Source: Prospectus, India Infoline Annual Reports
FY06
Robust networth of over Rs2 billion
(%)
16.0
12.0
Half year
180
1,200
20.0
272
(Rs cr)
1,664
1,200
FY12
FY13
FY10
FY11
FY12
FY13
H1 FY14
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Why invest in IIFL Home Bonds?
Housing Finance : Key demand drivers
 Population growth backed by favourable demographics : Number of households to
rise with change in age-mix, growing nuclear families
 Housing Stock shortage : Urban shortage estimated to stand at 18.78 million units
(March 2012)
 Higher Penetration of Housing Finance : Penetration in urban areas stood at
41.2% in FY13 and rural areas at only 8.3%
 Tax Benefits: Government has been offering several tax concessions to spur
housing demand
 Income Growth - Rising affordability
HFCs to continue to gain market share in Housing Finance due to strong
origination skills, focused approach, targeting special customer segments
and superior customer service
Source: CRISIL Report, Retail Finance – Housing, October 2013
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Why invest in IIFL Home Bonds?
Bonds to be listed on NSE and BSE
 No TDS (tax deducted at source) if bonds held in demat form, therefore cash flow is full
11.52%
 Investors can sell bonds at prevailing market rates on the two exchanges
IIFL Bonds 2011, 2012 and 2013 received overwhelming response and
are being serviced timely
IIFL Bonds 2013 mobilised Rs10bn+, making it the largest public bond
issue by a private issuer in the last four years*
 Public Issue Opens on December 12, 2013
 Allotment on a first‐come‐first‐serve basis, calculated at the end of the day
 Minimum application size Rs10,000; Minors can apply
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* As per Prime Database
Disclaimer
Certain statements made in this presentation may not be based on historical information or facts and may be “forward looking statements”, including those relating to general business plans and
strategy of India Infoline Housing Finance Limited (“Company” or “Issuer”) its future outlook and growth prospects, and future developments in its businesses and its competitive and regulatory
environment. Actual results may differ materially from these forward-looking statements due to a number of factors, including future changes or developments in Company 's business, its
competitive environment, its ability to implement its strategies and initiatives and respond to technological changes and political, economic, regulatory and social conditions in India.
This presentation is based on Prospectus dated December 02, 2013 and does not constitute an offer, invitation or solicitation to purchase or sell, any securities of Company and should not be
considered a recommendation for any investor to subscribe or purchase any of Company's securities including non convertible debentures. Neither this presentation nor any other documentation
or information (or any part thereof), delivered or supplied under or in relation to the non convertible debentures or other securities of the Issuer shall be deemed to constitute an offer or an
invitation by or on behalf of Issuer.
Issuer, the Lead managers
and Co-Lead Managers
as such, makes no representation or warranty, express or implied, as to, and do not accept any responsibility or liability with respect to the fairness, accuracy, completeness or correctness of any
information or opinions contained herein. The information contained in this presentation, unless otherwise specified, is only current as on the date of the Prospectus. Issuer, the Lead Managers and
Co-Lead Managers assume no responsibility to publicly amend, modify or revise any forward looking statements on the basis of any subsequent development, information or events, or otherwise.
Unless otherwise stated in this document, the information contained herein is based on management information and estimates. The information contained herein is subject to change without
notice and past performance is not indicative of future results. Issuer may alter, modify or otherwise change in any manner the content of this presentation without obligation to notify any person
of such revision or changes. This presentation may not be copied and disseminated in any manner. All figures mentioned here, expect otherwise mentioned are in INR million.
The Company’s NCDs will not be offered, issued or sold in any country outside the jurisdiction of India, including the United States of America, whether pursuant to an exemption from, or in a
transaction not subject to the registration requirements of applicable securities laws of any such jurisdiction. The Prospectus will not, however constitute an offer to sell or an invitation to subscribe
for the NCDs offered hereby in any jurisdiction other than India to any person to whom it is unlawful to make an offer or invitation in such jurisdiction. Accordingly these materials are not directed at
or accessible by these persons. Any person into whose possession the Prospectus comes is required to inform himself or herself about, and to observe, any such restrictions. Such persons shall refer to
the specific Disclaimer as displayed in the Prospectus and the Company’s website in this regard.
The information presented here is not an offer or solicitation of any offer to purchase or sell any equity, non convertible debentures or any other security of Issuer.
Issuer is proposing, subject to market conditions and other considerations, a public issue of non convertible debentures (‘NCDs’). The Draft Prospectus and the Prospectus are available on the
website of the National Stock Exchange of India Limited, BSE Limited, SEBI, Lead Managers and Co-Lead Managers. Any potential investor should note that investment in debt securities involves
risk. For further details, please see the section titled “Risk Factors” in the Prospectus. Investors are urged to take any decision to invest in the NCDs issued pursuant to the Prospectus solely on the
basis of the disclosures and disclaimers made therein.