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ECL Finance NCD Offer - Jan 2014 (Apply)

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ECL Finance Ltd, (ECLFL) a subsidiary of Edelweiss Capital Ltd. is coming out with an offer of Secured Redeemable Non-Convertible Debentures of the face value of Rs. 1,000 each to mobilize Rs. 500 crore including green shoe option of Rs. 250 crore. The issue opens for subscription on 16.01.14 and will close on or before 27.01.14.

ECLFL 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. The company is a part of the Edelweiss Group which is one of India's prominent financial services organization having businesses organized around four broad lines - Credit including Retail Finance and debt capital markets; Commodities; Financial Markets including Asset Management and Life Insurance services. Minimum application is to be made for 10 Bonds (i.e. Rs. 10000) and then in multiple of 1 bond thereon, thereafter. Allotment will be made in demat as well as physical mode, but trading will take place in demat form only. Post allotment it will be listed on BSE. Issue is rated as CARE/AA and BWR/AA (stable), which 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. The instrument carries coupon rate of 11.60% to 11.385% (additional 0.25% for permanent resident employees and stakeholders of the promoter company. Tenure of the scheme is 36 months and 60 months giving a yield of 12.24% to 12.79% (Pre-tax).

The funds raised through this Issue, after meeting the expenditures of and related to the Issue, will be used for the financing activities including lending and investments, subject to applicable statutory and/or regulatory requirements, to repay our existing loans and our business operations including for our capital expenditure and working capital requirements.

The issue is lead managed by ICICI Securities Ltd., Axis Capital Ltd and Edelweiss Financial Services Ltd. Axis Trustee Services Ltd is acting Trustee for Debenture and Link Intime India Pvt Ltd. is the registrar to the offer.


Conclusion / Investment Strategy

Average offer for moderate investment

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Dec 12, 2019

Review 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

The ECL Finance NCD Jan 2014 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if ECL Finance NCD Jan 2014 worth investing. The ECL Finance NCD Jan 2014 Note sets the NCD expectations in systematic way which tells you if ECL Finance NCD Jan 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in ECL Finance NCD Jan 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.