Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
Zerodha (Trading & Demat Account)
FREE Equity Delivery and MF
Flat ₹20/trade Intra-day/F&O
|
|
• Nido Home Finance Ltd. was earlier known as Edelweiss Housing Finance Ltd.
• This is the 3rd debt offer from the company since July 2016.
• The company has hiked the coupon rates for this issue.
• This debt offer has CRISIL AA-/Negative and ICRA A+/Stable ratings.
• It has posted steady growth in its bottom lines in the reported periods.
• Well-informed investors may consider parking moderate funds for the medium to long term.
ABOUT COMPANY:
Nido Home Finance Ltd. (NHFL) (erstwhile known as Edelweiss Housing Finance Ltd.) is a non-deposit-taking housing finance company focusing on offering secured loan products to suit the needs of individuals, including small ticket loans to customers in the affordable housing category. It is a part of the Edelweiss group which is one leading diversified financial services groups in India. Its products include home loans, non-housing loans including loans against property, and construction finance.
As of June 30, 2023, it has 67 offices in 67 cities in India. Over the past several years, the company has diversified and expanded its presence into markets that are of greater relevance to the products it offers. It aims to provide a quick and seamless customer experience with an emphasis on a single-window interface for the customer. Its Branch Operations have significant technology architecture to ensure industry-leading customer experience. NHFL's operations are supported by 598 employees as of June 30, 2023.
Its Loan Book was Rs. 3069.21 cr. as of March 31, 2023, and the total capital adequacy ratio computed on the basis of applicable NHB requirements was 32.06%. Its gross NPAs and net NPAs as a percentage of Loan Book were 1.91% and 1.46% respectively as of March 31, 2023.
As of March 31, 2023, its Promoters Edelweiss Financial Services Limited, Edelweiss Rural and Corporate Services Limited and Edel Finance Company Limited hold 5.00%, 55.23% and 39.77% of its paid-up share capital, respectively.
ISSUE DETAILS:
The company is coming out with its 3rd debt offer since June 2016 with a new name. The company will be issuing secured redeemable non-convertible debentures of Rs. 1000 each. The base size of the issue is Rs. 75 cr. and it has an option to retain oversubscription to the tune of Rs. 75 cr. thus making a total issue size of Rs. 150 cr. The issue has already opened for subscription on August 30, 2023, and will close on or before September 12, 2023. Minimum application is to be made for 10 NCDs (i.e. Rs. 10000.00) and in multiple of 1 NCD (i.e. Rs. 1000.00) thereon, thereafter. Post allotment, these NCDs will be listed on BSE only.
The company will be spending Rs. 3.39 cr. for this entire issue process. From the net proceeds, the company will use at least 75% for onward lending, financing, and repayment/prepayment of principal and interest on existing borrowings and a maximum of up to 25% for general corporate purposes.
Trust Investment Advisors Pvt. Ltd., Nuvama Wealth Management Ltd., and Tipsons Consultancy Services Pvt. Ltd. are the joint lead managers for this issue and Beacon Trusteeship Ltd. is the debenture trustee. KFin Technologies Pvt. Ltd. is the registrar of the issue.
The company has allocated 10% for Institutional, 10% for Non-Institutional, 40% for HNIs, and 40% for Retail investors.
The company is offering coupon rates ranging from 8.95% to 10.45%. It has tenure ranging from 24 months, 36 months, 60 months, and 120 months. It offers Monthly, Annually, and Cumulative interest payment mods based on series and tenure. It offers an additional incentive of 0.20% to its existing bondholders in all the group companies as long as they continue to hold these bonds on the respective dates of interest payments.
CREDIT RATING:
The debt offering is rated CRISIL AA-/Negative by CRISIL Ratings Ltd., and ICRA A+/Stable by ICRA Ltd. The rating is not a recommendation to buy, sell or hold securities and investors should make their own decision. The ratings given by CRISIL and ICRA are valid as of the date of this Prospectus and shall remain valid until the ratings are revised or withdrawn. The rating may be subject to revision or withdrawal at any time by the assigning rating agency and each rating should be evaluated independently of any other rating. The rating agency has a right to suspend or withdraw the rating at any time on the basis of factors such as new information.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, NHFL has posted a total income/net profit of Rs. 551.05 cr. / Rs. 3.73 cr. (FY21), Rs. 513.91 cr. / Rs. 13.81 cr. (FY22), and Rs. 444.69 cr. / Rs. 16.30 cr. (FY23). Surprisingly, though its top line marked declines, its bottom line surged for the reported periods. For Q1 of FY24 ended on June 30, 2023, it earned a net profit of Rs. 3.46 cr. on a total income of Rs. 109.87 cr.
Its average cost of borrowing was 9.28% (FY21), 8.96% (FY22), and 9.18% (FY23). Its current debt-equity ratio of 3.68 will rise to 3.87 after this debt issue.
Review By Dilip Davda on August 29, 2023
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 before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.
About Dilip Davda
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.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
The Nido Home Finance NCD Aug 2023 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if Nido Home Finance NCD Aug 2023 worth investing. The Nido Home Finance NCD Aug 2023 Note sets the NCD expectations in systematic way which tells you if Nido Home Finance NCD Aug 2023 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in Nido Home Finance NCD Aug 2023 by providing NCD recommendations i.e. subscribe, avoid and neutral.
FREE Intraday Trading (Eq, F&O)
Flat ₹20 Per Trade in F&O
|
|
