Invest in NIDO HOME FINANCE LIMITED NCD 2023
Investing in NIDO HOME FINANCE LIMITED that offer both security and attractive returns is a priority for many individuals and investors, formerly known as Edelweiss Housing Finance Limited, brings you an opportunity to achieve just that through its Secured Redeemable Non-Convertible Debentures (NCDs). In this blog, we'll explore the specifics of NIDO HOME FINANCE LIMITED's NCDs and why they might be an excellent addition to your investment portfolio.
Company Information
NIDO HOME FINANCE LIMITED, originally incorporated as Edelweiss Housing Finance Limited in 2008, is a non-deposit taking Housing Finance Company headquartered in Mumbai, India. It is a part of the renowned Edelweiss group, known for its diversified financial services in India. The company focuses on providing secured loan products tailored to meet the needs of individuals, including small-ticket loans, primarily in the affordable housing category.
Credit Rating
Before delving into the details of NIDO HOME FINANCE LIMITED's NCDs, let's consider their creditworthiness. These NCDs have been assigned a credit rating of "CRISIL AA-/Negative" by CRISIL and "[ICRA] A+ (Stable)" by ICRA Limited. These high ratings indicate a strong level of safety and stability associated with these NCDs, making them an attractive choice for investors seeking secure investments.
Key Features of NIDO HOME FINANCE LIMITED's NCDs
Issue Structure
Issuer : NIDO HOME FINANCE LIMITED (Formerly Known as Edelweiss Housing Finance Limited)
Instrument : Secured Redeemable Non-Convertible Debentures (NCDs)
Issue Period : Opens on Wednesday, August 30, 2023, and closes on Tuesday, September 12, 2023
Issue Size : The offering comprises an initial size of Rs. 75 Crore, with the possibility to exercise an oversubscription option of up to Rs. 75 Crore, aggregating up to Rs. 150 Crore
Issue Price / Face Value : Rs. 1,000/- per NCD
Minimum Application : Rs. 10,000/- (10 NCD) and in multiples of Rs. 1,000/- (1 NCD) thereafter.
Listing: The NCDs are proposed to be listed on BSE
Category Allocation
- Category I - Institutional: 10%
- Category II - Non-Institutional: 10%
- Category III - HNI (High Net Worth Individuals): 40%
- Category IV - Retail: 40%
| Specific Terms for Each Series of NCDs |
| Series |
I |
II |
III |
IV |
V |
VI |
VII |
VIII |
IX |
X |
| Frequency of Interest Payment |
Annual |
Cumulative |
Monthly |
Annual |
Cumulative |
Monthly |
Annual |
Cumulative |
Monthly |
Annual |
| Coupon (% perannum) for Category I, II, III & IV |
8.95% |
NA |
9.20% |
9.60% |
NA |
9.67% |
10.10% |
NA |
10.00% |
10.45% |
| Effective Yield (perannum) for in Category I, II, III & IV |
8.94% |
8.95% |
9.59% |
9.59% |
9.60% |
10.10% |
10.09% |
10.10% |
10.46% |
10.44% |
| Amount (₹ / NCD) on Maturity for NCD Holders in Category I,II, III & IV Maturity for NCD Holders in |
Rs. 1,000 |
Rs. 1,187.30 |
Rs. 1,000 |
Rs. 1,000 |
Rs. 1,317.00 |
Rs. 1,000 |
Rs. 1,000 |
Rs. 1,618.70 |
Rs. 1,000 |
Rs. 1,000 |
| *Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series. |
Interest Payment and Tenor
NIDO HOME FINANCE LIMITED offers various series of NCDs, each with its specific features :
Series I, II, V, and VI: Annual Interest Payment, 24-month tenor
Series III, IV, VII, and VIII: Monthly Interest Payment, 36-month tenor
Series IX and X: Annual Interest Payment, 120-month tenor
Coupon Rates and Effective Yields
For Category I, II, III & IV investors :
- Series I : 8.95% coupon rate, 8.94% effective yield
- Series III : 9.20% coupon rate, 9.59% effective yield
- Series V : 9.60% coupon rate, 9.59% effective yield
- Series VII : 9.67% coupon rate, 10.10% effective yield
- Series IX : 10.00% coupon rate, 10.46% effective yield
Maturity Amount
At maturity, NCD holders in Category I, II, III & IV will receive :
- Series I: Rs. 1,000
- Series III: Rs. 1,187.30
- Series V: Rs. 1,000
- Series VII: Rs. 1,317.00
- Series IX: Rs. 1,000
Additional Incentive
Investors in the proposed issue who are also holders of NCDs/Bonds previously issued by the Company, and/or affiliated entities, or equity shareholders of the Company, may be eligible for an additional incentive of up to 0.20% p.a.
Conclusion
NIDO HOME FINANCE LIMITED offers a compelling opportunity for investors to grow their wealth securely with its NCDs. With a strong credit rating, various series tailored to different preferences, and competitive coupon rates, these NCDs could be an excellent addition to your investment portfolio. Remember, investments carry risks, and it's essential to conduct your due diligence or consult a financial advisor before making any investment decisions. For more detailed information, you can refer to the Red Herring Prospectus.
Disclaimer:
This blog serves solely for informational purposes and should not be construed as investment advice.