High Yield | AA Rated | Minimum Investment: 10k Only
Dhani Loans and Services Limited (DLSL) is a non-deposit taking NBFC registered with RBI. DLSL is a 100% subsidiary of Dhani Services Limited formerly called IndiaBulls Venture Limited. The company DLSL, is issuing AA IVR rated NCDs. The NCDs will be issued in seven series. The coupon rate ranges between 10.03% p.a and 11% p.a. They come with different tenures such as 370 days, 24 months, and 36 months. The IPO opens on April 19th and closes on May 10th. These NCDs are senior and secured. Beacon Trusteeship Limited is the Debenture Trustee and KFIN Technologies Private Limited is the Registrar of the issue.
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| Issuer | DHANI LOANS AND SERVICES LIMITED |
| Type of instrument | Secured, Rated, Listed, non-convertible debentures |
| Seniority | Senior |
| Listing | The NCDs will be listed on BSE and NSE within 6 working days from the issue closing date. |
| Issue Size | Base Issue Size: Rs 100 crores
Greenshoe Option : Rs 100 crores (if the company gets subscriptions that amount to more than Rs 100 crores, then it can retain this oversubscribed amount up to Rs 200 croes. The greenshoe option refers to this extra amount over and above the base issue size) |
| Issue Price | Rs. 1000 per NCD |
| Minimum Investment | Rs. 10,000 /- (10 NCD) and in multiples of Rs.1000/-(1 NCD) thereafter. |
| Issue Opening Date | April 19, 2022 |
| Issue Closing Date | May 10, 2022 |
| Mode of Application | ASBA only |
| Mode of Issuance | Dematerialized only |
| Credit Ratings | IVR AA/ Stable Outlook by Informerics |
DLSL NCD IPO: Coupon rates and effective yield for each of the series
| Series | Frequency | Tenure | Coupon Rate | Yield |
| I | Cumulative | 370 Days | NA | 10% |
| II | Annual | 24 Months | 10.50% | 10.49% |
| III | Cumulative | 24 Months | NA | 10.50% |
| IV | Monthly | 24 Months | 10.03% | 10.50% |
| V | Annual | 36 Months | 11% | 10.99% |
| VI | Cumulative | 36 Months | 11% | 11% |
| VII | Monthly | 36 Months | 10.49% | 11% |
Allocation Ratio
The allocation ratio is prepared based on norms laid down by SEBI. Before announcing the allocation ratio, the same has to be approved by SEBI. Once the IPO subscription closes, applications will be divided into different categories. The category-wise allocation ratio is always decided and declared during the launch of the particular IPO. Considering the Allocation Ratio, units will be assigned to applicants. Refer to the chart to know the application ratio for DLFL NCD-IPO.
Non-Institutional:10 Cr, HNI: 30 Cr, Retail : 30 Cr, Institutional: 30 Cr.
Issue Analysis
Pros
- The NCD is AA rated security with a stable outlook.
- The coupon rate is between 10% to 11% which is much higher than FDs.
Cons
- The profit and Loss statement shows a loss for the company.
- Net NPA has increased from 0.74% in 2020 to 2.5% in 2021.
- The interest coverage ratio is 0.73 for 2021.
#Net NPA- Net NPA is the measure of bad/ non-paying loans of the company. It is a strong indicator of Banks’/ NBFC’s health.
#Interest Coverage Ratio- The ratio indicates whether the company is earning enough to meet its interest obligations that arise out of the company’s borrowings. The lower the interest coverage ratio, the more the company’s debt burden and therefore the greater the likelihood of bankruptcy or default.
About Dhani Financials
Dhani loans and Services limited is a subscription-based technology company. The company operates under Dhani Services Limited which is a consumer business. The company operates its mobile application “Dhani” (“Dhani App”) through which it provides digital healthcare and digital transactional finance to its’ customers. They have also issued a card called ‘Dhani OneFreedom Card’ which is been accepted by over 10 million merchants in either of the ways, digital or physical.
- As of September 30, 2021, there were approximately 1.32 million subscribers to the Dhani OneFreedom Card
- Employee base: 14,000+
- Number of branches: 133 branches over 900 cities
Strengths
- Strong Brand recognition
- World wide reach
- Technical use for assessing loan products
- Robust risk management framework
- Robust Balance Sheet with strong capital adequacy
Balance Sheet
- Net Interest Income- 845.04 Cr
- Net NPA to total loan size – 2.5%
(In Crores)
| 2021 | 2020 | 2019 | |
| Revenue | 1176.694 | 2683.681 | 1775.229 |
| Expenses | 1301.589 | 2741.845 | 1250.519 |
| PAT | (115.826) | (37.427) | 384.516 |
Ratio Analysis
Investment Process
IPOs are facilitated by entities called Lead Managers. Generally, these lead managers are brokerage firms. Investors need to apply for IPO through lead managers, and once the allotment is made, investors will receive the bond units in their Demat account. You can invest in IPOs via GoldenPi in 3 easy steps.
If the investment amount is more than 10 Lakhs
A.Fill up the form with the required information.
B.Take a photo of your form and share it with your Relationship Manager for bidding on exchange.
C. Courier the filled up IPO form to our office address as early as possible. The issue closes on the 22nd of December 2021. The earlier you send it, the better it is.
Our Address: IndiQube Orion, Ground Floor,
24th Main Road, Garden Layout, Sector 2,
HSR Layout, Bangalore, Pincode: 560102
If the investment amount is less than 10 lakhs
If the investment amount is less than 10 lakhs, retail investors can apply for an IPO online in three simple steps.
Select the product- Visit GoldenPi.Com and go to the collection page. Visit the IPO section and choose the issuing company. The product page provides information such as a coupon, yield, maturity, and payment frequency. The product page also displays credit rating and issuer details that help investors to make an appropriate decision.
Decide Investment Amount – Decide the amount you want to invest. You need to select the series and the number of units you want to purchase. The calculator displays the total investment amount.
Pay via UPI– Now provide UPI handle. You will receive a mandate in the UPI app. Go to the respective UPI app and make payment by approving the mandate.
IPO allotment
IPO will be allotted to you on a first-come, first-serve basis and credited to your Demat account.
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Previous Dhani NCD IPO details | Jan – 2022
| Issuer | DHANI LOANS AND SERVICES LIMITED |
| Type of instrument | Secured, Rated, Listed, non-convertible debentures |
| Seniority | Senior |
| Listing | The NCDs will be listed on BSE and NSE within 6 working days from the issue closing date. |
| Issue Size | Base Issue Size: Rs 150 crores
Greenshoe Option : Rs 150 crores (if the company gets subscriptions that amount to more than Rs 150 crores, then it can retain this oversubscribed amount up to Rs 300 croes. The greenshoe option refers to this extra amount over and above the base issue size) |
| Issue Price | Rs. 1000 per NCD |
| Minimum Investment | Rs. 10,000 (10 NCDs across all series) |
| Issue Opening Date | January 04, 2022 |
| Issue Closing Date | January 27, 2022 |
| Mode of Application | ASBA only |
| Mode of Issuance | Dematerialized only |
| Credit Ratings | IVR AA/ Stable Outlook by Informerics |
DLSL NCD IPO: Coupon rates and effective yield for each of the series
| Series | Frequency | Tenure | Coupon Rate | Yield |
| I | Cumulative | 370 Days | NA | 10% |
| II | Annual | 24 Months | 10.50% | 10.50% |
| III | Cumulative | 24 Months | NA | 10.50% |
| IV | Monthly | 24 Months | 10.03% | 10.50% |
| V | Annual | 36 Months | 11% | 10.99% |
| VI | Cumulative | 36 Months | NA | 11% |
| VII | Monthly | 36 Months | 10.49% | 11% |
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