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ECL Finance NCD issue - Apply

Published on Friday, February 20, 2015 by Dilip Davda

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ECL Finance Ltd is one of the leading systemically important non-deposit taking NBFCs, focused on offering a broad suite of secured corporate loan products, retail loan products which are customized to suit the needs of the corporates, SMEs and individuals. It is performing with a steady growth in top and bottom lines.

It is now coming out with its third NCD offer on 26.02.15. The company is offering Secured Redeemable Non-Convertible Debentures of the face value of `1,000 each amounting to Rs. 400 crore with a green shoe option for keeping 100% oversubscription and thus taking the total issue size to Rs. 800 crore. Issue opens for subscription on 26.02.15 and will close on or before 16.03.15. Minimum application is to be made for 10 NCDs and in multiple of 1 NCD thereon, thereafter. These NCDs are available for allotment in demat as well as physical mode but trading on exchanges will be in demat mode only. There is no Put and Call option for this offer.

The company is offering six options for this offer with tenure of 36 months and 60 months with interest payment option on Monthly, Annually or Cumulative basis as per the choice of investors. Coupon rate is ranging from 10% to 10.60% depending on the selection of option and giving an effective yield ranging from 10.45% to 10.64%.

This issue is graded as CRISIL AA and ICRA AA (Stable), indicating at a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. Issue is lead managed by Axis Capital Ltd and Edelweiss Financial Services Ltd. Link Intime India Pvt Ltd is the registrat and Axis Trustee Services Ltd is the Debenture Trustee for this offer. Post allotment, these NCDs will be listed on BSE and NSE.

Remarks: As market is expecting rate cuts in coming few months, this better graded NCD offer is worth subscribing for.

(Disclaimer: Author has no plans to invest in this offer)

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About Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).

About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.



2. ATUL SHAH  Aug 17, 2015 14:43 Reply
1. R.GOPAL  Feb 21, 2015 19:24 Reply
You have mentioned sec.&unsec NCD but you have not at all mentioned the % of interest for various periods .In case of Sec NCD 100% safe from my opinion. Better to invest for 400 days only.

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