September 12, 2023
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Nido Home Finance NCD Aug 2023 Details
NCD Issue Opens on 30 August 2023
NCD Issue Closes on 12 September 2023
# NCD Guidance is given at the bottom of the post
About the Company:
Nido Home Finance Limited (formerly known as Edelweiss Housing Finance Limited) is a non-deposit taking Housing Finance Company focused on offering secured loan products to suit the needs of the 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 groups in India. The Company was incorporated on May 2, 2008.
As on June 30, 2023 it has 67 offices in 67 cities in India. Over the past several years, it has diversified and expanded its presence into markets that are of greater relevance to the products it offers. Its offices aim at providing quick and seamless customer experience with emphasis on a single window interface for the customer. Its Branch Operations have significant technology architecture to ensure industry leading customer experience.
Its operations are supported by 598 employees as on June 30, 2023.
Its Loan Book was Rs 30,692.05 million as at March 31, 2023. Its total capital adequacy ratio as at March 31, 2023 computed on the basis of applicable NHB requirements was 32.06%. Its gross NPAs and net NPAs as a percentage of Loan Book was 1.91% and 1.46% respectively as at March 31, 2023.
Total income and profit after tax of the Company as of June 30, 2023 stood at ? 1,098.65 million and ? 34.59 million, respectively.
As at 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 our paid-up share capital, respectively.
Get more details about the company @ http://www.nidohomefin.com
NCD Promoter: Edelweiss Financial Services Limited, Edelweiss Rural & Corporate Services Limited and Edel Finance Company Limited
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 Rs 1,500 million by CRISIL Ratings Limited and;”[ICRA] A+ (Stable)” for an amount of Rs 1,500 million by ICRA Limited.
| Nido Home Finance NCD Aug 2023 Detail | |
| Issue Open | Aug 30, 2023 – Sep 12, 2023 |
| Security Name | Nido Home Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 75.00 Crores |
| Issue Size (Shelf) | Rs 150.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 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 |
| NCD Allocation Ratio | |
| Category | NCD’s Allocated |
| Institutional | 10% |
| Non-Institutional | 10% |
| HNI | 40% |
| Retail | 40% |
| NCD’s Offered by Category | |
| Category | NCD’s Reserved |
| Institutional | 75,000 |
| Non-Institutional | 75,000 |
| HNI | 3,00,000 |
| Retail | 3,00,000 |
| Total NCD’s | 7,50,000 |
| Nido Home Finance Limited NCD Coupon Rates | |||||||||
| # | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 |
| Frequency of Interest Payment | NA | Monthly | Annual | NA | Monthly | Annual | NA | Monthly | Annual |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 36 Months | 36 Months | 36 Months | 60 Months | 60 Months | 60 Months | 120 Months | 120 Months |
| Coupon (% per Annum) | NA | 9.20% | 9.60% | NA | 9.67% | 10.10% | NA | 10.00% | 10.45% |
| Effective Yield (% per Annum) | 8.95% | 9.58% | 9.59% | 9.60% | 10.10% | 10.09% | 10.10% | 10.46% | 10.44% |
| Amount on Maturity (In Rs.) | Rs 1,187.30 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,317.00 | Rs 1,000.00 | Rs 1,000.00 | Rs 1,618.70 | Rs 1,000.00 | Rs 1,000.00 |
Objects of the Issue
The company proposes to utilize the funds which are being raised through the Issue:
For the purpose of onward lending, financing, and for repayment/ prepayment of interest and principal of existing borrowings of the Company.
General Corporate Purposes.
| Company Financials | |||
| Nido Home Finance NCD Aug 2023 Financial Information (Restated) | |||
| Period Ended | 31-Mar-21 | 31-Mar-22 | 31-Mar-23 |
| 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 |
| Reserves and Surplus | |||
| Total Borrowing | |||
| Amount in Rs Crore | |||
Address of the Company
Nido Home Finance Limited
Tower 3, 5th Floor, Wing B,
Kohinoor City Mall Kohinoor City, Kirol Road,
Kurla (West) Mumbai 400070, Maharashtra, India
NCD Lead Managers
Trust Investment Advisors Pvt Ltd
Nuvama Wealth Management Ltd
Tipsons Consultancy Services Pvt Ltd
NCD Registrar
Kfin Technologies Limited
Nido Home Finance NCD Aug 2023
Red Herring Prospectus
Analysis & Guidance:
1) First question is why Edelweiss Group is raising funds for such a small entity which is not listed one! Normally, the business-houses try to expand their flagship finance company by entering into different business, whereas here the group has plans to raise funds in small unlisted entity.
2) As on June 30, 2023 it has 67 offices in 67 cities in India. Its total capital adequacy ratio as at March 31, 2023 computed on the basis of applicable NHB requirements was 32.06%. Its gross NPAs and net NPAs as a percentage of Loan Book was 1.91% and 1.46% respectively as at March 31, 2023.
3) There are 417 loan accounts classified as Stage 3 (including cases classified as non-performing asset (NPA) as per RBI guidelines) having overdue amount of Rs. 119.04 million as at Mach 31, 2022.
4) 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.
5)For 36 months tenure, you can get effective interest rate of 9.58% (series 2, Interest payment monthly), about 3% higher than bank FDs.
6) You may take limited risk and apply for this NCD issue. Higher risk is not suggested.
| KLM Axiva Finvest NCD Tranche II 2023 | |
| Subscription Status | |
| On 12.09.2023 | @ 5.00 pm |
| Category | Subscription |
| Institutional | 1.73 T |
| Non-Institutional | 5.47 T |
| HNI | 0.49 T |
| Retail | 0.81 T |
| Total | 1.24 T |
