Nido Home Finance NCD opens for subscription from 30 August 2023. The company aims for a base issue size of ₹75 Crores.
About the company
Incorporated in 2008, Nido Home Finance is a non-deposit-taking Housing Finance Company focused on offering secured loan products to suit the needs of individuals, including small ticket loans to its customers in the affordable housing category. It is a part of Edelweiss group which is one leading diversified financial services group in India.
Nido Home Finances loan book was INR 3,069.21 crore as of 31 March 2023. Its total capital adequacy ratio as of 31 March 2023 computed on the basis of applicable NHB requirements was 32.06%, and its gross NPAs and net NPAs as a percentage of loan book were 1.91% and 1.46% respectively. As of 30 June 2023, it has 67 offices in 67 cities in India, and the company operations are supported by 598 employees. The company offers customers a range of mortgage-related loan products, including:
mortgage-related loan products
- Home Loans, which include offering secured loans to salaried individuals, self-employed individuals, and others for purchase/ construction/ renovation of residential properties, against mortgage of the same property, comprise 56.97% of the Loan Book as of 31 March 2023.
- Non-housing loans including loans against property (LAP), is a loan facility majorly offered to self-employed individuals, against an unencumbered property, where the end use may be towards deployment of working capital, purchase of property, or any other purpose. LAP includes offering loans for business purposes for the purchase of commercial property or for investment in assets, against a mortgage of the same property, comprising 31.41% of the Loan Book as of 31 March 2023.
- Construction Finance is a loan facility offered to real estate developers towards the cost of the construction of residential projects. The financing is against real estate collateral along with/without any other security. The loan disbursements are construction-linked. Construction Finance includes offering loans for the construction of residential projects, against mortgage of the same property and/or other collateral and comprises 11.62% of the Loan Book as of 31 March 2023.
Objectives of the Issue
- For the purpose of onward lending, financing, and for repayment/ prepayment of interest and principal of existing borrowings of our Company.
- General Corporate Purposes.
Nido Home Finance NCD Details
| Issue Open | August 30, 2023 – September 12, 2023 |
| Security Name | Nido Home Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 75.00 Crores |
| Issue Size (Shelf) | ₹ 150.00 Crores |
| Issue Price | ₹ 1000 per NCD |
| Face Value | ₹ 1000 each NCD |
| Minimum Lot Size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | CRISIL AA-/Negative & [ICRA] A+ (Stable) |
| Tenor | 24, 36, 60 and 120 months |
| Series | Series I to X |
| Payment Frequency | Monthly and Annually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Beacon Trusteeship Limited |
Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 24 months | Annual | 8.95% | 8.94% | ₹ 1,000 |
| Series 2 | 24 months | Cumulative | NA | 8.95% | ₹ 1,187.30 |
| Series 3 | 36 months | Monthly | 9.20% | 9.58% | ₹ 1,000 |
| Series 4 | 36 months | Annual | 9.60% | 9.59% | ₹ 1,000 |
| Series 5 | 36 months | Cumulative | NA | 9.60% | ₹ 1,317.0 |
| Series 6 | 60 months | Monthly | 9.67% | 10.10% | ₹ 1,000 |
| Series 7 | 60 months | Annual | 10.10% | 10.09% | ₹ 1,000 |
| Series 8 | 60 months | Cumulative | NA | 10.10% | ₹ 1,618.70 |
| Series 9 | 120 months | Monthly | 10.00% | 10.46% | ₹ 1,000 |
| Series 10 | 120 months | Annual | 10.45% | 10.46% | ₹ 1,000 |
NCD Rating
The NCDs proposed to be issued under the Issue have been rated “CRISIL AA-/Negative” (pronounced as CRISIL double A minus rating with negative outlook) for an amount of ₹ 1,500 million by CRISIL Ratings Limited and;”[ICRA] A+ (Stable)” for an amount of ₹ 1,500 million by ICRA Limited.
Company Financials
| Period Ended | 31 Mar 2021 | 31 Mar 2022 | 31 Mar 2023 |
| Assets | 4,931.10 | 3,956.66 | 3,786.24 |
| Revenue | 551.05 | 513.91 | 444.69 |
| Profit After Tax | 3.73 | 13.81 | 16.06 |
| Net Worth | 762.79 | 777.63 | 794.47 |
NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 75,000 |
| Non-Institutional | 75,000 |
| HNI | 300,000 |
| Retail | 300,000 |
| Total NCD’s | 750,000 |
Company Promoters
- Edelweiss Financial Services Limited
- Edelweiss Rural & Corporate Services Limited
- Edel Finance Company Limited
NCD Lead Manager
TRUST INVESTMENT ADVISORS PRIVATE LIMITED
109/110, Balarama, Bandra Kurla Complex,
Bandra (East), Mumbai – 400 051, Maharashtra
Phone: +91 22 4084 5000
Email: projectsamridhi.Trust@trustgroup.in
Website: www.trustgroup.in
EDELWEISS FINANCIAL SERVICES LIMITED
801 – 804, Wing A, Building No 3, Inspire BKC,
G Block, Bandra Kurla Complex, Bandra East, Mumbai – 400 051
Tel: +91 22 4086 3535
Email: ehfl.ncd@edelweissfin.com
Website: www.edelweissfin.com
TIPSONS CONSULTANCY SERVICES PRIVATE LIMITED
401, Sheraton House, Opp. Ketav Petrol Pump,
Polytechnic Road, Ambawadi Ahmedabad – 380015
Phone: +91 79 66828047/8460505716
Email: projectneev@tipsons.com
Website: www.tipsons.com
NCD Registrar
KFIN TECHNOLOGIES LIMITED
Selenium Tower B, Plot No – 31 & 32,
Financial District, Nanakramguda,
Serilingampally, Hyderabad Rangareddi,
500 032, Telangana, India
Phone: +91 40 6716 2222
Email: nhfl.ncd@kfintech.com
Website: www.kfintech.com
Company Contact Details
NIDO HOME FINANCE LIMITED
Tower 3, 5th Floor, Wing B, Kohinoor City Mall Kohinoor City,
Kirol Road, Kurla (West) Mumbai 400070, Maharashtra, India
Phone: +91 22 4272 2200
Email: investorgrievances@edelweisshousingfin.com
Website: www.edelweisshousingfin.com
Final Thoughts
Non-convertible debentures (NCDs) are a better investment option for those who are looking for a diversified portfolio. investing in Nido Home Finance NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
