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Edelweiss Housing Finance NCD offer review

Published on Tuesday, July 5, 2016 by Dilip Davda

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Edelweiss Housing Finance NCD offer review

Edelweiss Housing Finance Ltd (EHFL) a subsidiary of Edelweiss group is coming out with a maiden debt offer. EHFL aims to be a non-banking financing institution aspires to become lender for retail home loans and SMEs, particularly in Tier II cities. To retire its high cost debt upto Rs. 150 crore and to meet growing demand of funds for its network expansion, the company is coming out with a Secured NCD offer of Rs. 1000 each to mobilize Rs. 250 crore with a green shoe option to retain oversubscription to the tune of hundred percent and thus making the aggregate size of Rs 500 crore. Issue opens for subscription on 05.07.16 and will close on or before 27.07.16.

Minimum application is to be made for 10 NCDS (i.e. Rs. 10000) and in multiples of 1 NCD (i.e. Rs. 1000) thereon, thereafter. No put or call option is available for this offer. The rate of return offered is 9.50% (three years), 9.75% (five years) and 10% (10 years). Allotment is available in demat as well as physical mode as per the choise of investors. However, trading will take place only in demat mode. For 10 years term, monthly interest option is available.

Issue is lead managed by SBI Capital Markets Ltd., Edelweiss Financial Services Ltd and IDBI Trusteeship Ltd is the debenture trustee. Karvy Computershare Pvt Ltd is the registrar to the issue. Post allotment, NCDs will be listed on BSE and NSE. Issue is rated as CARE AA by CARE and ICRA and AA+ by BWR. The rating of NCDs by CARE indicates instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk.

For last three fiscals its AUM increased from Rs. 1155.22 crore to Rs. 2387.27 crore and its net profit too has seen similar growth from Rs. 4.74 crore for FY 14 to Rs. 38.21 crore for FY 16.

Conclusion: Considering the rating and the coupon rate of 9.5% plus, this offer is attractive one for those who are looking for steady interest income.

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. 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).

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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.

Email: dilip_davda@rediffmail.com


14 Comments

ipotrackerzz
14. ipotrackerzz  Aug 12, 2016 07:21 I Like It. | I Don't Like It. | Report Abuse Reply
What about DHFL NCD allotment?
ipotrackerzz
13. ipotrackerzz  Aug 3, 2016 15:48 I Like It. | I Don't Like It. | Report Abuse Reply
My query relates to DHFL NCD Issue. Can anyone update the latest subscription figs?
Raj
13.2. Raj  Aug 3, 2016 19:17 I Like It. | I Don't Like It. | Report Abuse
one clairifcation - As I m new to NCD''s , it is mentioned that the issue will be First Come First Serve basis , then how the allotment will happen and why people keep subscribing if it is already oversubscribed?
ipotrackerzz
13.3. ipotrackerzz  Aug 3, 2016 20:00 I Like It. | I Don't Like It. | Report Abuse
Is it true? 19 times on day one???
ajay M
12. ajay M  Jul 22, 2016 16:08 I Like It. | I Don't Like It. | Report Abuse Reply
EHFL-9.57%-19-7-26-NCD closing price 1014.92
EHFL-10%-19-7-26-NCD closing price 997.94
Chirag
11. Chirag  Jul 20, 2016 14:07 I Like It. | I Don't Like It. | Report Abuse Reply
What is the listing date? Can it be sold on exchange?
RKPHOPHALIA
11.1. RKPHOPHALIA  Jul 22, 2016 08:30 I Like It. | I Don't Like It. | Report Abuse
it will list today on both BSE and NSE.
ajay m
11.2. ajay m  Jul 22, 2016 16:06 I Like It. | I Don't Like It. | Report Abuse
EHFL-10%-19-7-26-NCD closing price 997.94
EHFL-9.57%-19-7-26-NCD closing price 1014.92      
JD
10. JD  Jul 19, 2016 20:28 I Like It. | I Don't Like It. | Report Abuse Reply
Applied for 1 lac rs
Alloted 53 bonds....refund is 47216.Can any one explain the calculation ?
SUMIR
10.2. SUMIR  Jul 19, 2016 22:40 I Like It. | I Don't Like It. | Report Abuse
47216-47000=216 IS YOUR INTEREST WHICH IS GIVEN BY EHFL.
YOU GET 53 BOND AMOUNT 1000/BOND SO UR INVESTMENT IS RS.53000
JD
10.3. JD  Jul 20, 2016 22:51 I Like It. | I Don't Like It. | Report Abuse
Thank you for the info.
And my mistake 47126 is the amount credited.

126 is the interest that I got it. But hows that calculated ?
RISHI SAGAR
9. RISHI SAGAR  Jul 17, 2016 17:09 I Like It. | I Don't Like It. | Report Abuse Reply
sir i bank a/c in hdfc bank
RISHI SAGAR
8. RISHI SAGAR  Jul 17, 2016 12:52 I Like It. | I Don't Like It. | Report Abuse Reply
ALL Sr MEMBER OF FORUM PLS TELL ALL THE AMT WHICH U APPLIED FOR NCD IS BLOCK OR NOT BUZ MY AMT DOES'' T BLOCKED YET PLS SHARE THX ....
Sumit
7. Sumit  Jul 15, 2016 06:27 I Like It. | I Don't Like It. | Report Abuse Reply
Edelweiss NCD Allotment date pls
nimit ss
7.1. nimit ss  Jul 17, 2016 15:58 I Like It. | I Don't Like It. | Report Abuse
Amount Blocked on 13-07-2016.
IDBI BANK
Dilip Davda
6. Dilip Davda  Jul 12, 2016 08:15 I Like It. | I Don't Like It. | Report Abuse Reply
EHFL NCD offer gets overwhelming response and is closed on 11.07.16 with a total collection of around Rs.844 crore against aggregate size of Rs. 500 crore. So allotment will be on proportionate basis for all categories.
PARESH PANDYA
6.1. PARESH PANDYA  Jul 12, 2016 16:10 I Like It. | I Don't Like It. | Report Abuse
Mr. dilip davda, please let me know there was any reservation for retail investor? As they shown 60% for HNI and retail. If so how much for retail and what is the subscription of retail?
RISHI SAGAR
6.2. RISHI SAGAR  Jul 12, 2016 17:06 I Like It. | I Don't Like It. | Report Abuse
HOW TO CHECK APPLICATION AND ALLOTMENT STATUS OF NCD AND PLS TELL ANYBODY AMT BLOCK IN HIS ACCOUNT
ipotrackerZzz
5. ipotrackerZzz  Jul 9, 2016 09:01 I Like It. | I Don't Like It. | Report Abuse Reply
Can anyone tell me when will the allotment be out. It is sure that if this issue remains open, this will be heavily oversubscribed. So, may be they prepone the closure. That''s an exception. But normally, when can the allotment be expected?
DEB KUMAR SUR
4. DEB KUMAR SUR  Jul 8, 2016 19:28 I Like It. | I Don't Like It. | Report Abuse Reply
This NCD oversubscribed 3.6 times on the 1st day itself. Good secured NCD rate attracted more retail customers.
Akshay More
3. Akshay More  Jul 8, 2016 16:08 I Like It. | I Don't Like It. | Report Abuse Reply
How to subscribe?
Hebbar
3.1. Hebbar  Jul 8, 2016 18:41 I Like It. | I Don't Like It. | Report Abuse
Through your brokerage firm / online via bank account.
chandrasekar
3.2. chandrasekar  Jul 9, 2016 16:47 I Like It. | I Don't Like It. | Report Abuse
Subscription can be done by physical application (or) by online(onlinesbi.com). But as of now, the subscription on the first day itself is around 300%(yes, around three hundred percent). So it may not be available from Monday(11.07.2016). Even I thought of applying by online only next week...but now it may not be possible...ok..see you...
Hebbar
2. Hebbar  Jul 8, 2016 12:38 I Like It. | I Don't Like It. | Report Abuse Reply
Very few NCD''s which give high interest rate and this is one of them. This is a must have in one''s portfolio considering the falling interest rates.
Dilip Davda
1. Dilip Davda  Jul 7, 2016 18:39 I Like It. | I Don't Like It. | Report Abuse Reply
This debt offer also has AA rating from ICRA and AA+ from BWR. Remain to be included in the main review.







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