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High Yield | A+/ Watch Negative | Minimum Investment: 10k Only
Bond overview
Nido Home Finance Limited is issuing the Non-Convertible Debentures. These NCDs are “CRISIL A+/Watch Negative” rated. The NCDs are being issued in ten series: coupon ranges from 9.50% to 10.75% p.a. and different tenures of 24 months, 36 months, 60 months and 120 months. The NCDs are secured and redeemable in nature.
Coupon rates and effective yield for each of the series
Redemption Payment Schedule
Allocation Ratio
The allocation ratio is prepared based on norms laid down by SEBI. Before announcing the allocation ratio, the same has to be approved by SEBI. Once the IPO subscription closes, applications will be divided into different categories. The category-wise allocation ratio is always decided and declared during the launch of the particular IPO. Considering the Allocation Ratio, units will be assigned to applicants. Refer to the chart to know the application ratio for Nido Home Finance Limited NCD-IPO.
Investment Process for Nido Home Finance Limited NCD IPO
You can invest in IPOs via GoldenPi in 3 easy steps.
If the investment amount is less than & up to 10 lakhs, retail investors can apply for an IPO online.
If the investment amount is more than 10 Lakhs.
Financial Overview
Snapshot stating the Revenue, Expenses, and PAT (In crores)
Cash flow for last few years (In crores)
Cash flow refers to the movement of cash in and out of the business at a specific point in time. It represents the net balance of the cash movement.
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- *Cash flow from operating activities reflects the amount a company generates through its product of services.
- **Cash flow from investing activities reflects cash generated and spent relating to investing activities, like purchase of assets, sales of securities etc.
- ***Cash flow from financing activities gives an insight into the financial stability of a company to its investors. It reflects the net flows of cash that are used to fund the company.
Ratio Analysis
Issue analysis
Pros
- These NCDs are secured providing an additional layer of protection to your investment.
- The issuer is offering as high as 10.75% p.a. when compared with FD rates it is much higher.
- With a reduced net NPA of 1.19% in 2024, the company showcases a significant enhancement in asset quality, bolstering investor confidence.
Cons
- The company’s credit rating, previously stable at A+, has now shifted to A+ with a negative watch, suggesting possible financial uncertainties.
- The excessively high interest coverage ratio suggests potential challenges in the company’s ability to service interest payments over the long term
To get better returns than Bank FDs, invest in NCD-IPOs online.
Liquidity
The company has more than 1,000 Crores in cash and cash equivalents as on 31st march 2024.
Backed by a low GNPA of 1.69% and a solid debt-to-equity ratio of 3.54:1, this housing finance company stands out for its financial stability and effective risk management, making it a reliable choice for investors
About Nido Home Finance Limited
Nido Home Finance Limited (Nido) is a housing finance company that is registered with National Housing Bank. It was established in FY2011 in accordance with the Group’s plan to establish a presence in the affordable housing market. In May 2023, the business changed its name to Nido Home Finance Limited (Formerly Edelweiss Housing Finance Limited) as part of the Group’s positioning effort. The business has adjusted its approach in recent years to concentrate on small-ticket home loans.
Strengths
- Established brand and parentage
- Pan-India distribution network
- Access to range of cost effective funding sources
- Diversified credit profile, strong credit evaluation and risk management systems
- Experienced Management Team and Culture
- Future-ready Ecosystem Based on Data-Sciences and Analytics
Weakness
- Low Profitability
- Asset Quality remains Vulnerable
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Source- Prospectus June 07, 2024
Disclaimer – The information is published as on date 13/06/2024 based on information available on Prospectus June 07, 2024. The information may be subject to change in case of change in terms of prospectus or any other reason as the case maybe. Contents which are exclusively for educational information/knowledge sharing on capital market concepts and has no influence the investment/sale decisions of any investors
