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ECL Finance NCD Issue Offer - Jun 2014 (Apply)

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ECL Finance Ltd, an NBFC arm of Edelweiss group is once again tapping the primary market with an Unsecured Redeemable Non-Convertible Debentures offer for raising Rs. 200 crore for its need of fund for financing activities. It has also received the nod to keep 100 per cent oversubscription making the total size on offer Rs. 400 crore.

This issue opens for subscription on 17.06.2014 and will close on or before 02.07.14. Face value of each debenture is Rs. 1000 and minimum application is to be made for 10 NCDs and in multiples of 1 NCD thereon, thereafter. These bonds are available for allotment in demat as well as physical mode, but trading will take place only in demat mode. This offer has 70 months tenure and has 12% coupon rate with three options of interest payment i.e. Monthly, Annually and Cumulative giving an yield of 12 to 12.68% depending on the selection of the option.

CARE has assigned CARE AA and Brickwork has assigned BWR AA rating to this offer indicating 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. Axis Trustee Services Ltd is the Debenture Trustee. Link Intime India Pvt Ltd is the registrar to the issue. Post allotment, NCDs will be listed on BSE and NSE. It has no put and call options for the offer.


Conclusion / Investment Strategy

This is the second offer from ECL Finance. Its previous offer received overwhelming response and the same is expected for this offer as well. Although this offer is of Unsecured NCDs, AA rating given to it and higher coupon rate will lure investors who are looking for better yields.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on Dec 11, 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 June 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 June 2014 worth investing. The ECL Finance NCD June 2014 Note sets the NCD expectations in systematic way which tells you if ECL Finance NCD June 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in ECL Finance NCD June 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.