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 11% 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.

• • *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 11% 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.
• 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

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

Liquidity

The company has more than 1,000 Crores in cash and cash equivalents as on 31st march 2024.

To get better returns than Bank FDs, invest in NCD-IPOs online. 

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

• The company’s established brand and reputable parentage signify a foundation of trust and stability, appealing to investors seeking reliability and long-term growth potential.
• The company boasts a comprehensive Pan-India distribution network, facilitating widespread market reach and accessibility.
• The company benefits from access to a diverse array of cost-effective funding sources, ensuring financial resilience and flexibility.
• 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

• The company’s subdued profitability, particularly in its insurance businesses, alongside challenges in scaling up retail lending and managing credit costs, poses a significant weakness despite improvements in certain sectors.

Invest in Bond IPO online in just 5 minutes

Source- Prospectus September 12, 2024

Disclaimer – The information is published as on date 17/09/2024 based on information available on Prospectus September 12, 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

About GoldenPi Expert

With over 15 years of experience across fixed income and debt markets, he brings deep domain expertise along with a strong focus on investor education and transparency. An alumnus of IIT Kharagpur and IIM Calcutta, his views are personal and should not be considered investment advice.

All Articles