10.75% Nido Home Finance NCD

Nido Home Finance Limited (formerly known as Edelweiss Housing Finance Limited) is coming up with secured NCD bonds which opened for subscription now. Company is a non-deposit-taking housing finance company offering customers access to credit for various types of loans. The interest rates for Nido Home Finance NCD are up to 10.75%. These NCDs are offered for 24 months to 120 month tenure. Interest is paid either monthly and yearly or on maturity depending on the NCD option. Should you invest in Nido Home Finance NCD issue of June, 2024? What are the risk factors one should consider before investing in Nido Home Finance NCD 2024?

About Nido Home Finance Limited
Company was established in 2008 and is a non-deposit-taking housing finance company. It offers customers access to credit for various types of loans. It is a part of the Edelweiss Group which is one of the leading diversified financial services groups in India.
It provides Home Loans, Non Housing loans including loan against property, construction loan etc.,

As of December 31, 2023, Nido has 67 branches in 67 cities in India. The company’s operations are supported by 595 employees.

Nido Home Finance NCD – Jun-2024 – Issue Details

Subscription opening Date
13-Jun-24

Subscription closure Date
27-Jun-24

Issuing Security Name
Nido Home Finance Limited

Security Type
Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)

Issue Size (Base)
Rs 50 Crores

Issue Size (Option to retain over subscription)
Rs 50 Crores

Total issue size
Rs 100 Crores

Issue price
Rs 1,000 per bond

Face value
Rs 1,000 per bond

Series
I to X

Minimum Lot size
10 bonds and 1 bond there after

Tenure
24, 36, 60 and 120 Months

Interest Payment frequency
Monthly, Annually or on Maturity

Listing on
Within 6 working days on BSE

Lead Manager
Tipsons Consultancy Services Private LimitedNuvama Wealth Management Limited

Debenture Trustee/s
Beacon Trusteeship Limited

Nido Home Finance NCD  – Jun-2024 – Interest Rates

Series
I
II
III
IV
V
VI
VII
VIII
IX
X

Frequency of Interest Payment
Annual
Cumulative
Monthly
Annual
Cumulative
Monthly
Annual
Cumulative
Monthly
Annual

Tenure (months)
24
24
36
36
36
60
60
60
120
120

Coupon (% per Annum)
9.50%
NA
9.58%
10.00%
NA
10.03%
10.50%
NA
10.26%
10.75%

Effective Yield (% per Annum)
9.50%
9.50%
10.01%
10.00%
10.00%
10.50%
10.49%
10.50%
10.75%
10.74%

Amount on Maturity (In Rs.)
1,000.00
1,199.13
1,000.00
1,000.00
1,331.18
1,000.00
1,000.00
1,648.17
1,000.00
1,000.00

Nido Home Finance NCD – Jun-2024 – Credit Ratings
CRISIL Ratings assigned Nido Home Finance NCD rating as CRISIL A+/ Watch Negative. Securities with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such securities carry low credit risk.
How is the company doing in terms of profits?
Its profits are as below:

FY2021 – Rs 3.72 Crores
FY2022 – Rs 13.8 Crores
FY2023– Rs 16.06 Crores
FY2024– Rs 19.3 Crores

Why to invest in Nido Home Finance NCD issue – Jun-2024?

Nido Home Finance NCD’s offer attractive interest rates where investors can get interest up to 10.25% per annum.
It issues secured NCDs. In case a company gets wind-up/shut down for some reason, secured NCD investors would get preference in repayment of capital along with interest as those backed up by assets of the company. Hence, it is safe to invest in such secured NCD options.

Why not to invest in Nido Home Finance NCD issue – Jun-2024?

Company is an HFC and therefore  subject  to  various  regulatory  and  legal    Also,  future  regulatory changes may have a material adverse effect on its business.
They require substantial capital for its business, and any disruption in the sources of capital could have an adverse effect on its business.
Any negative events affecting the Indian real estate sector could adversely affect the value of the collateral for its loans, its business and result of operations.
Any increase in the  levels  of  non-performing  assets,  for  any  reason  whatsoever,  would  adversely  affect  its business.
They may face asset-liability mismatches, which could affect its liquidity and consequently affect its operations and financial performance adversely.
Refer Nido Finance Jun-24 NCD prospectus for complete risk factors.

Should you invest in Nido Home Finance NCD issue – Jun-2024?
This Nido Home Finance NCD issue offers high interest rates and yield. These days banks are offering high FD rates, however these NCDs still offer high interest rate up to 10.25% interest rates. Company is also earning consistent margins and these secured NCDs too.
On the other side, investors should not forget about risks involved in investing in NBFC bonds. If investors are willing to consider all these risks indicated in the NCD prospectus, they can invest in these bonds.

Suresh KP is the Founder of Myinvestmentideas. He is NISM Certified – Investment Adviser and NISM Certified – Research Analyst. He has been analyzing financial markets in the last 20 years.He can be reached at suresh@myinvestmentideas.com Latest posts by Suresh KP (see all)