loader
NIDO home finance limited's NCD
Piyush Prajapati 29 Aug, 2023

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.

RR Investors Capital Services Pvt. Ltd AMFI-registered Mutual Fund Distributor

Head Office - 4th floor, Indraprakash Building 21, Barakhamba Road, New Delhi – 110001

callLandline Number
+91 11-4444-1111

Customer Care
+91 9350316010

Security
  • SSL
Follow Us

SEBI Registration No: NSE Cash: INB231219636 | SEBI Registration No: NSE Derivative: INF231219636 | SEBI Registration No: BSE Cash: INB011219632 | SEBI Registration No: MCX-SX: INE261219636 | SEBI Registration No: NSE Currency: INE231219636 | SEBI Registration No: USE: INE271219631 | SEBI Registration No: CDSL: IN-DP-CDSL-3242005 | NCDEX Membership No: 00635 | MCX Membership No: 28850 | NSEL Membership No: 10650 | RBI Registration No: NBFC: N-14.03215 | IRDA Registration Number : CB-066/03 | AMFI Registration No : ARN -0032| SEBI Registration No: Merchant Banker: INM000007508


* Mutual fund investments are subject to market risks. Please read the scheme information and other related documents carefully before investing.


© 2022 RR Investors Capital Services Pvt. Ltd | All Rights Reserved.