Tata Capital Finance Services Ltd NCD

Tata Capital Housing Finance Limited NCD Interest Rate Up to 8.70%

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[su_spoiler title=”NCD details and Interest Rates Tata Capital Housing Finance Limited” style=”fancy” open=”yes” icon=”plus-circle”]
NCD/Series Details

Issuer Tata Capital Housing Finance Limited
Issue Base Issue: Rs 500 crore, Option to retain Over subscription Amount : Rs 1,500 crore
Rating “CRISIL AAA/Stable” and “ICRA AAA/Stable”
Issue opens January 7, 2020
Issue closes January 17, 2020
Issue Price Rs. 1,000 per NCD (For all options of NCDs)
Minimum Application Rs 10,000/- (10 NCDs) across all Series and in multiples of 1 (one) NCD of Rs 1,000/- each thereafter
Coupon Type Fixed Coupon Rates
Mode of Allotment
In dematerialised form only
Application Mode
Compulsorily ASBA
Listing NCDs are proposed to be listed on BSE & NSE within 6 Working Days from the respective issue Closing Date.
SPECIFIC TERMS FOR EACH SERIES OF NCDs
NCDs Options/Series I II III IV V VI
Frequency of Interest Payment Annual Monthly Annual Monthly Annual Annual
Minimum Application Rs 10,000/- (10 NCDs) across all Options/Series collectively and in multiples of 1 (one) NCD thereafter
Issue Price (Rs/ NCD) Rs 1,000
Face Value / Issue Price (Rs / NCD) Rs 1,000
Tenor from Deemed Date of Allotment 36 months 60 months 60 months 96 months 96 months 120 months
Coupon (% per annum) for Category I & Category II 8.00% 7.92% 8.20% 8.01% 8.30% 8.55%
Coupon (% per annum) for Category III & Category IV 8.10% 8.01% 8.30% 8.10% 8.40% 8.70%
Effective Yield for Category I & Category II
7.99% 8.21% 8.19% 8.30% 8.29% 8.54%
Effective Yield for Category III & Category IV 8.09% 8.30% 8.29% 8.40% 8.39% 8.69%
Maturity/Redemption Date (from the Deemed Date of Allotment) 36 months 60 months 60 months 96 months 96 months 120 months
Nature of indebtness Secured Secured Secured Secured Secured Unsecured
Put and call option N.A.
Mode of Interest Payment Through various options available

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[su_spoiler title=”Application Process & Collection /Submission Centre” style=”fancy” open=”yes” icon=”plus-circle”]

Please take print of the Application Form A4 paper size. Click here to download Application form of Tata Capital Housing Finance Limited NCD 2019
Attach following document along with the application form : –
1] PAN Card and Demat Statement / Client Master List Photo Copy attested by applicant.
2] One Cancelled Cheque copy.
3] Demat A/c and Bidding is mandatory.
4] Payment will be deducted on allotment as it is ASBA application.
5] On First come First Serve Basis
6] Keep photocopy of application form for your record.
7] Submit / deposit your NCD application form in Listed/ Design Bank Branches. (search below for your city)
8] To record and track the status/allotment of your application form, send us the soft copy Application Form/ Acknowledgement Slip.
9] The actual bond will reflect in your demat account within 2 weeks time form date of allotment.
10] Free Home Service available *
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[su_spoiler title=”Download Tata Capital Housing Finance Limited NCD application Form” style=”fancy” open=”no” icon=”plus-circle”]

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[su_spoiler title=”Who can invest / Apply?” style=”fancy” open=”no” icon=”plus-circle”]

The following categories of persons are eligible to apply in the Issue:
Category I (Institutional) 10% of the overall issue size

  • Resident Public Financial Institutions, Statutory Corporations including State Industrial Development Corporations, Commercial Banks, Co-operative Banks and Regional Rural Banks, which are authorized to invest in the NCDs;
  • Provident Funds and Resident Pension Funds with minimum corpus of Rs. 250 million, Superannuation Funds and Gratuity Fund, which are authorised to invest in the NCDs;
  • Venture Capital funds and / or Alternative Investment Funds registered with SEBI;
  • Insurance Companies registered with the IRDA;
  • National Investment Fund (set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of the Government of India and published in the Gazette of India);
  • Insurance funds set up and managed by the Indian army, navy or the air force of the Union of India or by the Department of Posts, India
  • Mutual Funds, registered with SEBI.

Category II (Non Institutional) 10% of the overall issue size

  • Companies; bodies corporate and societies registered under the applicable laws in India and authorized to invest in the NCDs;
  • Educational institutions and associations of persons and/or bodies established pursuant to or registered under any central or state statutory enactment; which are authorized to invest in the NCDs;
  • Public/private charitable/religious trusts which are authorised to invest in the NCDs;
  • Scientific and/or industrial research organizations, which are authorised to invest in the NCDs;
  • Partnership firms in the name of the partners;
  • Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership

Category III (HNI) 40% of the overall issue size

  • Resident Indian individuals or Hindu Undivided Families through the Karta applying for an amount aggregating to above Rs. 10 Lakh across all series of NCDs in Issue.

Category IV (Individuals) 40% of the overall issue size

  • Resident Indian individuals or Hindu Undivided Families through the Karta applying for an amount aggregating up to and including Rs. 10 Lakh across all series of NCDs in Issue.

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[su_spoiler title=”About Tata Capital Housing Finance Limited NCD” style=”fancy” open=”no” icon=”plus-circle”]

Tata Capital Limited (“TCL”), the flagship financial services company of the Tata Group, is a subsidiary of Tata Sons Private Limited and is registered with the Reserve Bank of India as a Systemically Important Non-Deposit Accepting Core Investment Company (“CIC”).

Tata Capital and its subsidiaries are engaged in providing/supplying a wide array of services/products in the financial services sector and operates across various areas of business: Commercial Finance, Infrastructure Finance, Wealth Management, Consumer Loans and distribution and marketing of Tata Cards.

Today, Tata Capital is 190 + branches old and counting.

Tata Capital’s subsidiary companies include:
● Tata Capital Financial Services Limited (“TCFSL”) – A one-stop financial service provider that caters to the diverse needs of retail, corporate and institutional customers across businesses
● Tata Capital Housing Finance Limited (“TCHFL”) – TCHFL primarily offers Home Loans and Affordable Housing Finance Loans. It also provides Loans Against Property and Loans to Developers for constructing Residential and Commercial premises.
● Tata Cleantech Capital Limited (“TCCL”) – A Joint Venture between TCL and International Finance Corporation (“IFC”), TCCL is engaged in the business of providing finance and advisory services for projects in Renewable Energy, Energy Efficiency, Waste Management, Water Management and cash flow based Infrastructure Finance.

The following 5 Tata Values should be the driving force for all Tata businesses as they work towards delivering sustainable profitable growth in their respective sectors:
● Integrity
We will be fair, honest, transparent and ethical in our conduct; everything we do must stand the test of public scrutiny.
● Excellence
We will be passionate about achieving the highest standards of quality, always promoting meritocracy.
● Unity
We will invest in our people and partners, enable continuous learning, and build caring and collaborative relationships based on trust and mutual respect.
● Responsibility
We will integrate environmental and social principles in our businesses, ensuring that what comes from the people goes back to the people many times over.
● Pioneering
We will be bold and agile courageously taking on challenges, using deep customer insight to develop innovative solutions.

COMPANY PROFILE
● Tata Capital Housing Finance Limited (TCHFL) is one of India’s leading non-deposit taking housing finance companies registered with the National Housing Bank (“NHB”). TCHFL was incorporated in 2008 as a wholly-owned subsidiary of Tata Capital Limited (“TCL”) and accordingly is part of the Tata Capital Group which is part of the larger Tata group. TCL is majority-owned by Tata Sons Private Limited (formerly known as Tata Sons Limited), the holding company of Tata group.
● TCHFL focuses primarily on providing affordable home loans, home equity and construction finance. For Fiscal 2019, TCHFL made total loan disbursements of Rs 11,101.11 crore. As of September 30, 2019, gross Non-Performing Assets (“NPAs”) in terms of value and as a percentage of outstanding loans was Rs 400.59 crore or 1.45%, respectively and net NPAs in terms of value and as a percentage of net outstanding loans was Rs 145.06 crore or 0.53%, respectively.
● Since 2009, TCHFL has grown to become one of the key housing finance companies (“HFC”) in India based on loans and advances from financing activity of Rs 27,838.75 crore as of September 30, 2019.
● TCHFL has a strong marketing and distribution network in 88 branches throughout India as of September 30, 2019. TCHFL’s network provides with a pan-India presence across Tier I, Tier II and Tier III cities in India. TCHFL believe that they have an adequate sized direct sales team of employees located across the geographies where they operate. TCHFL also relies on external channels such as direct sales agents for referring potential customers to them.
● TCHFL’s focus growth areas for the business are (i) affordable housing through increasing their reach into Tier II and Tier III cities, (ii) developing partnerships with property developers, (iii) leveraging the “Tata” brand and (iv) increasing their utilization of alternate business channels, including digital platforms.
● The majority of TCHFL’s AUM comprises home loans, including in the affordable housing segment. As of March 31, 2017, March, 31, 2018, March 31, 2019 and September 30, 2019 mortgage loans (comprising home loans and home equity) constituted 88.03%, 89.54%, 88.77% and 87.79% respectively, of their AUM and construction finance loans constituted 11.97%, 10.46%, 11.23% and 12.21% respectively, of TCHFL’s AUM. As of March 31, 2017, March 31, 2018 and March 31, 2019 and September 30, 2019, Gross NPAs as a percentage of outstanding loans were 0.91%, 1.22%, 0.90% and 1.45% respectively. TCHFL’s borrowings as of September 30, 2019 were Rs 26,120.17 crore.

STRENGTHS
Respected “Tata” brand
TCHFL’s success as a provider of financial services is built upon the reputation and client trust of the “Tata” brand. The “Tata” brand is recognized as one of the most valuable brands in the world in a brand survey undertaken by Brand Finance Plc. TCHFL believes that the “Tata” name is associated with trust, knowledge, leadership and high quality services and solutions for customers and stakeholders. The reputation of the “Tata” brand is pivotal to their ability to reach out to customers and to access capital for their business. As of September 30, 2019, current customer base of the company was approximately 1,02,093 customers.

Unified financial services platform across Tata group and customer potential
TCHFL believes its customers benefit from Tata group’s integrated financial services platform, which offers a cross section of financial services and products including home loans, home equity and construction finance. TCHFL’s management structure enables them to leverage relationships across all lines of businesses within Tata group. TCHFL believes their product knowledge derived from the multi-channel platform within Tata Capital Group enhances their ability to cross-sell financial services to a wide group of customers.

Strong internal controls and risk management systems
TCHFL believe they have strong internal controls and risk management systems that allow them to assess and monitor risks across business lines. TCHFL’s Board has constituted various committees, including the Audit Committee, Asset Liability Committee, Risk Management Committee and Lending Committee, to monitor and manage risks at various levels. All new lines of business and product launches follow a rigorous internal approval process that requires assessing of risk and client suitability, understanding regulations and ensuring compliance with regulatory and internal policy prior to launch. Company has effective procedures for evaluating and managing the market, credit and other relevant risks.

Prudent credit and information technology policies and processes
TCHFL’s credit policies specify the types of loans to be offered, the documentary requirements and limits on loan amounts, all aimed at ensuring underwriting of low risk, good quality and profitable loans. Company has also established protocols and procedures to be followed when engaging with customers, as well as to determine the authority and levels to which credit decisions can be taken at various offices. Over the past ten years, TCHFL have developed expertise in mortgage loan underwriting and this expertise forms the cornerstone of their business.

Strong management team
TCHFL’s senior management team consists of professionals with experience in the banking and housing finance industries. The management team members share the common vision of excellence in execution and the team promotes a result-oriented culture that rewards employees on the basis of merit. Management team is supported by employees from a diverse set of backgrounds who bring significant expertise in their respective lines of business.

Diversified funding mix and access to capital
TCHFL’s uses a variety of funding sources to optimize funding costs, protect interest margins and maintain a diverse funding portfolio that enables them to further achieve funding stability and liquidity. As of September 30, 2019, TCHFL’s sources of funding were primarily from banks and financial institutions (42%), debt securities (non-convertible debentures and other debt instruments) (15%), refinancing from NHB (21%), commercial papers (11%), and subordinated debt (2%), borrowings outside India (ECBs) (2%), inter corporate deposits (1%) and CCCPS (6%). TCHFL’s Capital Adequacy Ratio (“CAR”) as of March 31, 2019 and as of September 30, 2019 stood at 16.23 % and at 16.97 % respectively.
● Strong growth opportunity supported by the Government’s housing policy agenda
TCHFL believe that the rapidly growing housing finance industry in India provide them with a strong growth opportunity to service people in diverse geographical regions and across income spreads, in particular the low income segment. The growth in demand for housing construction and houses has resulted and is expected to lead to an increase in demand for mortgages. The Government has announced its plans to provide housing for all by 2022.
● Strong network and pan-India presence
TCHFL’s geographical reach within India across Tier I, Tier II and Tier III cities allows them to target and grow their customer base. TCHFL offer loans to target their customer base of salaried and self-employed individuals across India. TCHFL’s presence in 88 branches throughout India as of September 30, 2019, allows them to undertake loan processing, appraisal and management of customer relationships in an efficient and cost effective manner.

The Tata Capital portfolio caters to the diverse financial requirements of its retail, corporate and institutional customers. A one-stop financial solutions partner, Tata Capital’s suite of products and services offers a wide range of options to the customer.
● Home Loans
● Personal Loans
● Business Loans
● Other Consumer Loans
● Loan Against Property / Home Equity
● Investment Advisory Services
● Wealth Products Distribution
● Commercial and SME Finance
● Leasing Solutions
● Cleantech Finance
● Institutional Distribution
● Private Equity
● Tata Cards

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[su_spoiler title=”Registrar/allotment Status” style=”fancy” open=”no” icon=”plus-circle”]

Tata Capital Financial Services NCD August 2019 Registrar
Karvy Fintech Private Limited
(formerly known as KCPL Advisory Services Private Limited)
Karvy Selenium Tower-B, Plot 31&32, Gachibowli Financial District, Nanakramguda,
Serilingampally, Hyderabad 500 032
Tel: (+91 40) 6716 2222; Fax: (+91 40) 2343 1551; Email: tcfsl.ncdipo@karvy.com
Investor Grievance Email: einward.ris@karvy.com
Website: www.karvyfi ntech.com; Contact Person: Mr. M Murali Krishna
Click here to check your allotment status

Company Contact Details
Tata Capital Financial Services
Registered Office: 11th Floor, Tower A, Peninsula Business Park, Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013, Maharashtra, India
Tel: (+91 22) 6606 9000; Fax: (+91 22) 6656 2699; Website: www.tatacapital.com;
Company Secretary and Compliance Officer: Ms. Avan Doomasia;
Email: compliance.ncd@tatacapital.com

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