GIC Housing Finance Secures ₹400 Crore Through Dual-Tranche NCD Issue with Staggered Returns
By Shishta Dutta | Updated at: Jan 9, 2026 01:53 PM IST
Mumbai, 18 July 2025: GIC Housing Finance Ltd (NSE: GICHSGFIN) has successfully raised ₹400 crore via a private placement of secured, listed, and rated Non-Convertible Debentures (NCDs) under its Series 09 issuance. The offering, structured across two tenure-based options, is designed to attract a diverse pool of investors with differentiated risk-return preferences.
The issue was made available through the BSE Electronic Book Provider (EBP) platform, with the Key Information Document (KID) uploaded at 12:50 PM on July 18, 2025. Allotment is scheduled for July 24, 2025.
Dual Options Cater to Investor Preferences with Varied Tenures and Coupon Rates
To optimise investor participation, GIC Housing Finance has divided the ₹400 crore issue into two options of ₹200 crore each. Both tranches will be listed on BSE and carry the same high credit ratings-CRISIL AA+/Stable and ICRA AA+/Stable. The key difference lies in their tenure and coupon rates.
| Particulars | Option 1 | Option 2 |
|---|---|---|
| Tenure | 580 days | 761 days |
| Coupon Rate | 7.49% p.a. | 7.59% p.a. |
| Deemed Date of Allotment | July 24, 2025 | July 24, 2025 |
| Maturity Date | February 24, 2027 | August 24, 2027 |
| Issue Size | ₹200 crore | ₹200 crore (includes green shoe option of ₹100 crore) |
| Listing | BSE | BSE |
| Security | First-ranking charge on hypothecated loan receivables | Same as Option 1 |
| Credit Rating | CRISIL AA+/Stable; ICRA AA+/Stable | CRISIL AA+/Stable; ICRA AA+/Stable |
| Interest Payment Frequency | Annual | Annual |
| First Coupon Payment Date | February 24, 2026 | August 25, 2025 (T+1 due to holiday) |
| Anchor Investors | ICICI Bank (₹45 Cr), Reliance General Insurance (₹15 Cr) | ICICI Bank (₹15 Cr), Reliance General Insurance (₹15 Cr) |
Allotment to Follow Yield-Time Priority as Compliance Measures Strengthen Investor Security
The NCDs are backed by an exclusive first-ranking charge on designated book debts, offering enhanced security to debenture holders. Allotment will be based on yield-time priority, ensuring transparency and fairness.
Additionally, any default or delay in payments will attract an extra 2% p.a. interest over and above the agreed coupon rate. BSE granted its in-principle listing approval on 13 November 2024, supporting the company’s strategic capital mobilisation efforts.
The issue is part of the ₹2,500 crore capital-raising resolution approved during the 34th Annual General Meeting and subsequently ratified by the Board on 16 May 2025.
Detailed Redemption Schedules Provide Clarity on Cash Flows
Investors can expect structured annual returns depending on their chosen option, with clear payment timelines and total returns.
Option 1 Cash Flow Summary
| Payment Date | Interest (₹) | Principal (₹) | Total (₹) |
|---|---|---|---|
| Feb 24, 2026 | ₹4,412 | – | ₹4,412 |
| Feb 24, 2027 | ₹7,490 | ₹1,00,000 | ₹1,07,490 |
| Total | ₹11,902 | ₹1,00,000 | ₹1,11,902 |
Option 2 Cash Flow Summary
| Payment Date | Interest (₹) | Principal (₹) | Total (₹) |
|---|---|---|---|
| Aug 25, 2025 | ₹645 | – | ₹645 |
| Aug 24, 2026 | ₹7,590 | – | ₹7,590 |
| Aug 24, 2027 | ₹7,590 | ₹1,00,000 | ₹1,07,590 |
| Total | ₹15,825 | ₹1,00,000 | ₹1,15,825 |
Regulatory Protections Built into the NCD Structure Enhance Investor Confidence
The issue strictly adheres to SEBI’s 2021 regulations for non-convertible securities. Important clauses include:
- A “Right to Recall” mechanism in case credit ratings drop to A+ or lower, enabling early redemption.
- A penalty clause of 2% p.a. interest if the Trust Deed is not executed within SEBI’s mandated timelines.
GIC Housing Finance Maintains Strong Fundamentals with Consistent Performance
GIC Housing Finance Ltd, backed by GIC Re and its subsidiaries, is a publicly listed housing finance company specialising in retail home loans across India. As of 31 March 2025, it reported:
- Total assets: ₹10,775 crore
- Net profit: ₹160 crore
- Promoter group holding: 42.41%
- GIC Re shareholding: 15.26%
The company maintains high creditworthiness, reflected in its consistent CRISIL and ICRA AA+/Stable ratings. This successful NCD issuance further underscores investor trust in its financial stewardship and growth strategy.
REF: https://nsearchives.nseindia.com/corporate/GICHSGFIN_18072025154845_NSE.pdf
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