During FY21, its AUM rose by 21.54% on a yearly basis. From FY16 to FY20, the AUM has grown at a compounded annual growth rate (CAGR) of 29%. The company has also expanded its presence to 21 states, which has resulted in diversification in its portfolio from South India to other areas.
During Q2FY22, net interest income rose by 8.28% on yearly basis to Rs 47 billion during Q2FY22. In the same line net profit also increased by 12.66% during the same quarter. During H1FY22, net interest income moved up by 11.18% on yearly basis while net profit declined by 6.31%.
IndInfravit has 11 toll projects and 2 annuity projects located in Maharashtra, Telangana, Karnataka and Rajasthan. Sponsor of the IndInfravit is L&T Infrastructure Development Projects Ltd and investment manager is LTIDPL INDVIT Services Ltd, who has 2 decades of experience in managing infrastructure projects.
The company operates under the concept of joint liability groups (JLG) and provides microfinance loans to women. As of March 2021, it had 755 branches across 17 states with a microfinance loan portfolio of Rs. 49.50 billion. The majority of its portfolio is concentrated in Tamil Nadu, Kerala, and Karnataka.
Indiabulls Housing Finance Limited (IBHFL), was started in 2005 and is registered with National Housing Bank. In 2013, the parent company Indiabulls Financial Services Limited merged with Indiabulls Housing Finance Limited. The company provides mortgage loans, LRD, and construction finance with a prime focus on the mortgage and home finance business.
Vedanta is issuing high yield bonds to repar debt maturing in 2021, indicating that the company does not have funds generated internally to service its short term debt. This is very negative for the credit as if the company is not able to start generating funds to service debt, the high interest cost for such new debt can prove to be a huge credit negative factor.
Shriram Transport Finance Company Ltd (STFCL) is a part of the Shriram group of companies, which has a strong presence in financial services in India, including commercial vehicle financing, consumer finance, life and general insurance, stockbroking, chit funds and distribution of financial products, such as life and general insurance products and mutual fund products. The company was established in 1979 and it has a long track record of four decades in the commercial vehicle financing industry in India. The Company has been registered as a deposit-taking NBFC with the Reserve Bank of India (RBI) since 4 September 2000 under Section 45IA of the Reserve Bank of India Act, 1934.
Tata Cleantech Capital Limited (TCCL) was formed in 2011 as a joint venture between Tata Capital Limited (TCL) and International Finance Corporation (IFC). Tata Capital owns 80.5% share while 19.5% is owned by IFC. TCCL is a Systemically Important Non-Deposit Accepting Non-Banking Financial Company (SI-ND-NBFC) registered with the Reserve Bank of India and classified as an Infrastructure Finance Company (“NBFC-IFC”). TCCL offers finance and advisory services for projects in renewable energy, energy efficiency, waste management, water management and other infrastructure projects.
Royal Sundaram General Insurance Co. Limited (RSGICL) was incorporated on August 22, 2000 as a joint venture between the Sundaram Finance Limited and Ageas Insurance International N.V. It is a privately-owned general insurance company whose area of operation includes general insurance services across individuals as well as corporates.
The base size of Rs. 1 billion with an option to retain oversubscription to the tune of Rs. 9 billion making the overall issue size of Rs. 10 billion. These NCDs are unsecured subordinated redeemable non-convertible debentures of the face value of Rs. 1000 each. The issue opens for subscription on July 06, 2021 and will close on or before July 28, 2021. Post allotment, NCDs will be listed on BSE and NSE.
Synopsis: Latest fiscal stimulus will improve the creditworthiness of corporates that are struggling with covid lockdowns but will also pull up inflation. Corporate bonds trading at higher yields can be attractive while gsecs, psu bonds, and AAA corporate bonds may see a rise in yields on inflation.
Cholamandalam Investment and Finance Company Limited (CIFCL) a non-banking finance company, is a part of the Chennai-based Murugappa Group of companies. It has a housing loan and SME loan portfolio, which largely constitutes the rest of the portfolio. The proportion of the portfolio in the SME segment is expected to remain modest over the next three years as the company is expected to concentrate on the vehicle finance, HE and housing finance segments. CIFCL has two wholly-owned subsidiaries viz., Cholamandalam Home Finance Limited (erstwhile Cholamandalam Distribution Services Limited) and Cholamandalam Securities Limited, and an associate entity – White Data Systems India Private Limited (31% stake).
AUM as of 31 March 2021 was at Rs 1529.47 billion as against Rs 1471.53 billion as of 31 March 2020, YoY growth of 4%. Core AUM growth in Q4 FY21 was Rs 93.97 billion as compared to Rs 20.61 billion in Q4 FY20. Company’s diversified business model has enabled it to revert to pre-COVID levels of AUM growth.
Uttar Pradesh Power Corporation Ltd (UPPCL) was founded in November 1999 by the Government of Uttar Pradesh in pursuance of the reform-restructuring of the erstwhile Uttar Pradesh State Electricity Board (UPSEB) under the UP Electricity Reforms Act, 1999. UPPCL Bonds Series III & IV 2016-17 has been assigned a rating of AA(CE)(Credit enhancement) while UPPCL Bonds Series I & II 2017-18 has been assigned a rating of AA-(CE) by Brickwork Rating.
Tata Steel Ltd. (TSL), founded in 1907, is the flagship company of the Tata Group. The company operates in 26 countries and has a commercial presence in more than 50 countries. The product mix of the company includes flat steel products such as HR Coils, CR Coils, Galvanized Steel, Long Products such as Wire Rods, Rebars, Ferro Alloys, Tubes, Bearings, Wires, etc.
Axis Bank Limited (ABL) was incorporated in December 1993. It was known as UTI Bank till 2007. Its major promoters are Life Insurance Corporation of India (LIC), Specified Undertaking of the Unit Trust of India (SUUTI), General Insurance Corporation of India, The New India Assurance Company Limited, National Insurance Company Limited, The Oriental Insurance Company Limited, and United India Insurance Company Limited.
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of RBI’s liberalization of the Indian Banking Industry in 1994. The bank was founded in August 1994 in the name of ‘HDFC Bank Limited’. HDFC Bank is promoted by HDFC Ltd. Currently, HDFC Bank Ltd. (HBL) is the largest private sector bank in India.
Power Grid Infrastructure Investment (PGInvIT) is owned(sponsored) by Power Grid Corporation of India which has been conferred a Maharatna PSU status. The Trust was registered with SEBI on January 7, 2021 as an infrastructure investment trust. Investment Manager of PGInvIT is PowerGrid Unchahar Transmission Limited, a wholly owned subsidiary of PGCIL. PowerGrid InvIT has been formed to own, construct, operate, maintain, and invest in power transmission assets as an infrastructure investment trust.
Muthoot Fincorp Limited (MFL) gold loan business increased at a steady rate of 22% compound annual growth rate (CAGR) during FY18 to FY20. The non-gold loan portfolio accounted for around 33% of the total portfolio as on December 31, 2020. Out of this, the microfinance business accounted for Rs 46 billion AUM as on December 31, 2020, while the AUM of vehicle and housing finance stood at Rs 22.24 billion and Rs 12.21 billion, respectively.
IDFC Bank was founded on 21st October 2014. IDFC Ltd was its ultimate parent, which was established in 1997 by the government for financing infrastructure projects. On 23 July 2015, IDFCB got approval for a banking license. It commenced banking operations on 1st October 2015. IDFCB later merged with Capital First Ltd to form IDFC First Bank in December 2018. As of 31st Dec 2020, its promoter holding stood at 40%.
In Union Budget 2021-22, Government of India extends the additional tax benefit of Rs 1.5 lakh on home loans for purchasing affordable houses by one year to March 31, 2022. The deduction under Section 80EEA of the Income Tax Act is applicable on the interest paid on loans and is over and above the tax benefit of Rs 2 lakh available under Section 24B. This step is expected to act a big boost to the affordable and rental housing sector.
Established in 1986, Power Finance Corporation is a financial institution in India focused on the power sector. Registered with the RBI as a NBFC and classified as an Infrastructure Finance Company by the RBI and plays a strategic role in government’s initiatives for the overall development of the power sector in India.
Cholamandalam MS General Insurance Company Limited (CMICL) is a joint venture between CFHL (part of Murugappa Group) and MSI. CMICL offers a wide range of products including motor, accident, engineering, health, liability, marine, property, travel and rural insurance and caters to individuals as well as corporates. The company has a network of over 90 branches across the country, with its head office in Chennai.
Advantages for investors: • Product Structure– ETF matures like a bond as it has a fixed maturity date and predetermined return if held till maturity. • Trades like ETF– As it will be listed on the exchange, liquidity will be enhanced by market makers. Investors can make entry and exit funds at the time of preference. • Diversified Fund- Raised money will be invested in AAA-rated GOI owned companies bonds which minimize the default risk.
Embassy Office Parks is India’s first listed REIT. Embassy REIT comprises 26.2 million square feet (msf) of completed and operational commercial properties across India. Company targetting seven Grade A office parks and four city-center office buildings in India’s performing office markets of Bengaluru, Mumbai, Pune and the National Capital Region (NCR). The portfolio has over 160 blue-chip corporate occupiers and comprises 78 buildings with strategic amenities, including two completed hotels, two under-construction hotels, and a 100MW(AC) solar park that supplies renewable energy to park.
IREDA is the GoI’s only nodal agency to incentivise the renewable energy sector and attract investments by way of subsidies and lower cost borrowings. It is the sole programme administrator of the MNRE’s schemes, such as incentive schemes for wind and solar power projects, the roof-top solar power programme, a capital subsidy scheme for solar water heating systems and the National Clean Energy Fund.
IIFCL is a wholly owned Government of India company started in 2006 to provide long-term financial assistance to infrastructure projects through the Scheme for Financing Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI. IIFCL has been registered as a NBFC-ND-IFC with RBI These broadly eligible sector for financing include transportation, energy, water, sanitation, communication, social and commercial infrastructure.
Housing and Urban Development Corporation Ltd. (HUDCO), incorporated in 1970, is a listed Miniratna public sector enterprise under the Ministry of Housing and Urban Affairs, Government of India (GoI). It is a public financial institution registered as a housing finance company (HFC) with NHB, and primarily finances social housing and UI projects. The GoI held a share of 89.81% in HUDCO, as of December 31, 2019, while the balance was held by the public.
HPCL was incorporated in 1974 after the takeover and merger of erstwhile Esso Standard and Lube India Limited by the Esso (Acquisition of Undertakings in India) Act 1974. Caltex Oil Refining (India) Ltd. (CORIL) was taken over by the Government of India in 1976 and merged with HPCL in 1978 by the CORIL-HPCL Amalgamation Order, 1978. Kosan Gas Company was merged with HPCL in 1979.
In Feb 2020, Indiabulls Housing Finance Ltd has been downgraded to AA from AA+ by both ICRA and CRISIL. The downgrade has been caused by continued challenges faced by IBHFL in mobilizing long-term resources and the weakening of its market position as a leading financier to the housing sector.
Sundaram Finance Ltd (SFL) is an RBI registered, deposit taking, NBFC, and is classified as an asset financing company. with a focus on commercial vehicle and car financing. The company also has diversified into Mutual Funds, Housing Finance, General Insurance, IT, Business Process Outsourcing, and Retail Distribution of financial services and products through subsidiaries, JVs, and associates.
PNB Housing Finance Limited is promoted by Punjab National Bank and is a registered Housing Finance Company with National Housing Bank (NHB). The Company got listed on the Indian stock exchanges on 7th November 2016. The Company’s asset base comprises retail loans and corporate loans. The retail business focusses on organized mass housing segment financing for acquisition or construction of houses.
LIC Housing Finance was established by LIC and other financial institutions in 1989. It is India’s second-largest housing finance company, with 9 regional offices, 24 back offices, and 282 marketing units in India, and 2 overseas representative offices with 2392 employees as of FY20. LIC Housing Finance Rating – CRISIL long term rating of AAA(Stable), CRISIL/ICRA/ short-term rating of A1+
Larsen & Toubro Ltd (L&T) is a major technology, engineering, construction, manufacturing, and financial services conglomerate, with global operations. The presence of L&T is in key sectors like- Hydrocarbon, Infrastructure, Power, Process Industries, and Defence – for customers in over 30 countries around the world. As of Q1Fy21, India contributed most to the top-line followed by US, Europe & Middle East. Orderbook as of Q1Fy21 stood at Rs. 3051 billion mainly pending orders that belonged to the Infrastructure and Hydrocarbon sectors. On the international order book front, the Middle East pending orders contribute 14% of the total order book.
HDFC Life Insurance (HLI) is a joint venture between HDFC Ltd and Standard Life Aberdeen, a global investment company. HDFC Pension Management Co and HDFC International Life & Re are wholly-owned subsidiaries. HDFC Life is a life insurance solutions provider in India, operating in protection, pension, savings, health solutions, investment, and annuity.
Mahindra and Mahindra Limited, India’s largest tractor and utility vehicle manufacturer, holds a 51.19% stake in MMFSL and provides operational and financial support to this company. This enables MMFSL to mobilize funds at a good rate and to manage economic downturns. Comfortable capital position: MMFSL is well-capitalized with a capital adequacy of 19.6% as of 30 June 2020, which is above the RBI’s minimum stipulated requirement of 15% with Tier I ratio of 15.3%. Moreover, M&M Ltd infuses both equity and debt in MMFSL. The debt to equity stood at 5.41 times as on 30 June 2020 as compared to 5.23 times as of 31 March 2020 and 5 times as of 30th June 2019.
During FY20, HDFC net profit grew significantly by 84% y-o-y to Rs 177 billion from FY19. Net Interest Income also rose by 12.63% to Rs 129 billion during FY20. On asset quality, gross NPA stood at 1.99% as of March 31, 2020, as compared to 1.18% as of March 31, 2019. Net Interest Margin remained stable at 3.4% during FY20 as compared to 3.3% in previous fiscal. Housing and Development Finance Corporation– HDFC Ltd, a housing finance company, was formed in 1977 by International Finance Corporation(IFC), Washington, and the Aga Khan Trust. As on March 31, 2020, HDFC’s gross loans, stood at Rs. 5,167.73 bn. The company’s market capitalization is at Rs 2,828 billion as of 31st March 2020. Its total employee count was at 3095 as of 31st March 2020.
Export–Import Bank of India (EXIM) was established in 1982 under Export-Import Bank of India Act 1981. It is wholly owned (100%) by Government of India. EXIM provides financial assistance to exporters and importers, and for functioning as the principal financial institution for coordinating the work of institutions engaged in financing the export and import of goods and services in order to promote the country’s international trade.
National Highway Authority of India (NHAI) was constituted under Section 3(1) of the National Highways Authority of India Act, 1988 and commenced operations in February 1995 to develop, maintain and manage national highways in the country. NHAI is vested with executive powers for developing national highways in India by the Ministry of Road Transport & Highways (MoRTH). NHAI is mandated to implement NHDP and Bharatmala, and is responsible for implementing other national highway projects, mainly those ensuring connectivity with major ports.
The Jawaharlal Nehru Port Trust (JNPT) was established in 1989 occupies a prominent place among the most modern ports in India and is ranked 28th among the top 100 container Ports in the world. The Jawaharlal Nehru Port Trust (JNPT) at Navi Mumbai (formerly known as the Nhava Sheva Port) is the largest container port in India and has been a key enabler for EXIM trade growth in India. JNPT handled over 5 Mn TEUs in FY 2018-19, which is share of ~52% of the total containerized cargo handled by all major ports in the country. Initially, JN Port was planned to be a ‘satellite port’ to the Mumbai Port with a purpose to decongest traffic.
National Bank for Agricultural and Rural Development (NABARD) was set up in 1982 through the NABARD Act, 1981, as an apex financial institution for the development and flow of credit to agriculture, small scale industries, cottage and village industries, rural sector, handicrafts and other rural crafts. NABARD also has a mandate to promote the integrated and sustainable development of rural areas. It also frames policies and guidelines for rural financial institutions and provides financial assistance to various issuing financial institutions and banks through refinancing. NABARD also monitors the flow of ground-level rural credit. NABARD is wholly owned by the GoI, with effect from March 31, 2018.
Indian Railway Finance Corporation (IRFC) was set up in 1986 as the dedicated financing arm of the Indian Railways for mobilizing funds from domestic as well as overseas Capital Markets. IRFC is under the administrative control of the Ministry of Railways. Company is registered as Systemically Important Non–Deposit taking Non-Banking Financial Company (NBFC – ND-SI) and Infrastructure Finance Company (NBFC- IFC) with Reserve Bank of India (RBI).
Fortish Healthcare is seeing a lot of bidding interest but even if the company passes on to strong hands, bondholders and lender of promoter holding companies are not going to see any benefits, The lenders against pledged shares of Fortis Healthcare have invoked the pledge and currently own a large stake in the company.