Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on July 14, 2025
- This is the 18th debt issue from IHFL (now Sammaan Capital) since September 2016.
• Its previous issue was in February 2025.
• This debt offer is rated CRISIL AA/Stable and ICRA AA/Stable.
• Well-informed investors looking for steady income may park moderate funds for medium to long-term.
ABOUT COMPANY:
Sammaan Capital Ltd. (SCL) – (erstwhile known as Indiabulls Housing Finance Ltd.) is a non-deposit taking housing finance company (“HFC”) registered with the NHB. It is also a notified financial institution under the SARFAESI Act. The company pre-dominantly offer housing loans and loans against property to varied client base which comprises (i) salaried employees; (ii) self-employed individuals; (iii) micro, small and medium-sized enterprises (“MSMEs”) and (iv) corporates.
SCL focuses primarily on long-term secured mortgage-backed loans. It also offers mortgage loans to real estate developers in India in the form of lease rental discounting for commercial premises and construction finance for the construction of residential premises. A majority of its Loan Book comprises housing loans, including in the affordable housing segment.
As of June 30, 2025, the Company has a network of 137 active branches at Company level, and 218 active branches including our Material Subsidiary, SammaanFinserve Limited, which are spread across 20 states in India. Its presence across India allows it to undertake loan processing, appraisal, and management of customer relationships in an efficient and cost-effective manner. As of June 30, 2025, the company had a direct sales team of 1,279 employees, on a standalone basis, who are located across network. This sales team is instrumental in sourcing the majority of customers. SCL also rely on external channels, such as direct sales agents for referring potential customers.
As at July 4, 2025, its standalone borrowings (other than debt securities) were Rs. 22275.23 crores, standalone debt securities were Rs. 14960.23 crores and standalone subordinated liabilities were Rs. 3754.26 crores.
ISSUE DETAILS:
The company is coming out with its Tranche-IV 2000000 secured redeemable NCD of Rs. 1000 each to mobilize Rs. 100 cr. and it has a green shoe option to retain oversubscription to the tune of Rs. 100 cr., thus making an overall issue size of Rs. 200 cr. It has a shelf limit of Rs. 2000 cr. The issue opens for subscription on July 15, 2025, and will close on or before July 28, 2025. The minimum application to be made is for 10 NCDs (i.e., Rs. 10000) and in multiple of 1 NCD (i.e., Rs. 1000) thereon, thereafter. Post allotment, NCDs will be listed on BSE and NSE. This is the 18th debt issue from the company since September 2016.
SCL is spending Rs. 9.83 cr. for this debt issue. From the net proceeds, it will utilize at least 75% for the onward lending, financing or repayment with interest of certain borrowings and up to 25% for general corporate purposes.
This issue is jointly lead managed by Nuvama Wealth Management Ltd., Elara Capital (India) Pvt. Ltd., and Trust Investment Advisors Pvt. Ltd., while KFin Technologies Ltd. is the registrar of the issue, IDBI Trusteeship Services Ltd. is the Debenture Trustee.
This debt offer has coupon rates ranging from 8.42% to 9.95% and tenors of 24 months, 36 months, 60 months, 84 months, and 120 months. The frequency of interest payment will be Monthly, Annually or Cumulative as per the selection of the series applied. The company has allocated 20% for Institutions, 20% for Non-Institutions, 30% for HNIs and 30% for Retail investors.
ISSUE RATING:
This debt offer is rated CRISIL AA/Stable by CRISIL Ratings Ltd., and ICRA AA/Stable by ICRA Ltd. Securities with this rating are considered to have high degree of safety regarding timely servicing of financial obligations. Such securities carry very low credit risk. These ratings are not a recommendation to buy, sell or hold securities and investors should take their own decision. These ratings are subject to suspension, revision or withdrawal at any time by the assigning rating agencies and should be evaluated independently of any other ratings.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, IHFL has (on a consolidated basis) posted a total income/net profit/ -(loss), of Rs. 8993.90 cr. / Rs. 1177.74 cr. (FY22), and Rs. 8725.79 cr. / Rs. 1129.69 cr. (FY23), and Rs. 8624.77 cr. / Rs. 1216.97 cr. (FY24), Rs. 8683.25 cr. / Rs. – (1807.46) cr. (FY25). The sudden loss for FY25 raise eyebrows and major concern.
As of March 31, 2025, its net NPAs stood at 1.08% and Its debt equity ratio of 1.96 as of the said date, will rise to 1.97 post this issue.
Conclusion / Investment Strategy
The company brings its 18th debt offer and is coming in a short span after its previous offer which was in the month of February 2025. Surprisingly, it posted losses for FY2025, that raise alarm. Considering its AA/Stable ratings from CRISIL and ICRA, well-informed investors looking for a steady income may park funds for medium to long-term
Review By Dilip Davda on July 14, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
