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Dhani Loans & Services IPO April 2022 - Invest in Dhani Loans NCD IPO

Neeraj

Neeraj

Apr 19, 2022

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how-to-invest-in-dhani-loans-and-services-ncd-ipo-april-2022

Dhani Loans & Services IPO April 2022 - Invest in Dhani Loans NCD IPO

“Why 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 provide personal loans, secured and unsecured business loans to individual 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 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 on 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
financial-performance-dhani-ncd-ipo-april-2022
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 fund raising.

    He is also one of the Executive Director of the parent company DSL. All the remaining board members also well qualified and have vast experience in their respective fields and contribute significantly in 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 at H1-FY21 as against INR 4183.52 Crore as at 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 on March 31, 2020, the company is well capitalized with a CAR (%) of 58.92%. Also, it has adequately matched asset liability profile as on 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 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 at FY19 to 1.14x as at FY20 & further to 0.94x as at half year ended Sep-20, as the borrowings reduced over the years.
  • Improved operating income parameters
    The Company 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 on March 31, 2020. The NIM was 12.51% in FY19, which improved to 13.89% in FY20.
Credit Risks
  • Reduction in loan portfolio
    Decline in loan portfolio is due to sale of loan assets by way of Assignment, subsequently resulting in de-recognition of such assets from the books of the Company. The gain on sale of 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 at FY19 to INR 4,710 (AUM – INR 9,626 Crore) as at FY20.
  • Moderate Asset Quality
    Decline in loan portfolio is due to sale of loan assets by way of Assignment, subsequently resulting in de-recognition of such assets from the books of the Company. The gain on sale of 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 at FY19 to INR 4,710 (AUM – INR 9,626 Crore) as at FY20.
  • Impact of COVID-19 global pandemic
    Decline in loan portfolio is due to sale of loan assets by way of Assignment, subsequently resulting in de-recognition of such assets from the books of the Company. The gain on sale of 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 at FY19 to INR 4,710 (AUM – INR 9,626 Crore) as at FY20.
how-to-invest-in-dhani-loans-and-services-ncd-ipo-april-2022

How to invest in Dhani loans and Services NCD IPO April 2022

Why choose Bonds India?

BondsIndia is an online bonds platform for fixed-income securities such as IPOs, bonds, 54EC bonds and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, expert advice, and keeping a close watch on the market sentiment. BondsIndia brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with competitive price before anyone else.

BondsIndia ditches the traditional ways of investing by offering a blockchain-based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose Bonds India for its sleek interface, fail-safe communication and step-by-step guide to ensure a well-placed bid. You can apply for Dhani loans & Services NCD IPO on BondsIndia.com website.

Place you bid in three simple steps

Key in Basic Details > Choose the IPO Series > Place the bid

How to invest in Dhani Loans & Services Ltd April 2022?

Application process on Bonds India platform is simple and seamless.
  • Click on Apply Now in 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 payment method.

  • That’s all folks bidding complete!

Reach out to on info@bondsindia.com for more questions. Thank you for tuning in with Bonds India.
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