Tata Capital Housing Finance Limited - Tranche I

Tata Capital Housing Financial Limited is one of India's leading non-deposit taking housing finance companies registered with the NHB. They were incorporated in 2008 as a wholly-owned subsidiary of TCL and accordingly are part of the Tata Capital Group which is part of the larger Tata group. Company focus primarily on providing affordable home loans, home equity and construction finance. Since 2009, Company has grown to become one of the key HFC in India based on the loans and advances from financing activity of Rs 27,83,875 lakh as of September 30, 2019. Company has a strong marketing and distribution network in 88 branches throughout India as of September 30, 2019. Company's network provides them with a pan-India presence across Tier I, Tier II and TierIII cities in India.  Company is offering NCDs with a face value of Rs 1000. These NCDs will have tenures of 3 years, 5 years, 8 years and 10 years, with interest rates in the range of 7.92 - 8.70%.  Of the total issue size, 40% will be reserved for retail investors, who can invest up to Rs 10 lakhs. Minimum application is to be made for 10 NCDs and in multiple of 1 NCD thereon, thereafter. Allotment will be in demat mode only. Allotment will be made on "First come - First Served" basis.  Company's majority of the 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 the total AUM and construction finance loans constituted 11.97 %, 10.46%, 11.23 % and 12.21 % respectively, of the total AUM. As of March 31, 2017, March 31, 2018, March 31, 2019 and September30, 2019, company's Gross NPAs as a percentage of the outstanding loans were 0.91 %, 1.22 %, 0.90 % and 1.45 % respectively. This issue is rated CRISIL / AAA-Stable by CRISIL and ICRA / AAA-Stable by ICRA. The ratings of the NCDs indicate highest degree of safety regarding timely servicing of financial obligations. Good Rating, a brand like Tata group and lucrative coupon rates make this offer a worthy option for investors looking for long term fixed income. We give SUBSCRIBE rating to debt issue.

• 1 Tata Capital Limited