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 greenshoe 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 multiples 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 registrar and Axis Trustee Services Ltd is the Debenture Trustee for this offer. Post allotment, these NCDs will be listed on BSE and NSE.
As market is expecting rate cuts in coming few months, this better-graded NCD offer is worth subscribing for.
Review By Dilip Davda on December 9, 2019
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
