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10.75% NIDO Home Finance NCD

22 Feb 2024 - Tushar
Reading time about 2 minutes

Nido Home Finance Limited (formerly known as Edelweiss Housing Finance Limited), a part of the Edelweiss Group, is a Housing Finance Company that has been providing access to credit to customers for various kinds of loans since 2010. Nido Home Finance (NHFL) is 100% subsidiary of EFSL.

10.75% Nido Secured NCD

Edelweiss Group at a glance

  • Net worth : ~INR 6,046 cr
  • liquidity : ~ INR 3,300 cr
  • Q3FY24 PAT(Ex-Insurance): INR 183 cr

Business model – focused on affordable housing:

  • What: Small ticket home loans with an avg. loan size of ~25 lacs
  • Where: In BHARAT - tier 2 & 3 towns with high margins
  • How: Co lending with SBI and SCB. Asset light model

Growth in co-lending - 80% book is under co lending model with Banks like SBI, BOB and SCB etc. Strong backing and credit lines at subsidized rates from marquee PSU banks and financial institutions like

  • SBI – 250 cr
  • IOB – 75 cr
  • National housing board (NHB) – 25 cr

External validation of loan quality via securitization and co-lending. Strong collateral (house property assets) and high recovery visibility due to SARFAESI act.

Key Financials:

  • Collection efficiency for the quarter at 98.7%
  • GNPA at 2.24%
  • Net NPA is 1.61%
  • The NIM is in the range of 4%
Title Details
Issue opens Tuesday, February 13, 2024
Issue closes Monday, February 26, 2024
Allotment First Come First Serve Basis
Face Value Rs.1,000 per NCD
Issue Price Rs.1,000 per NCD
Nature of Instrument Secured Redeemable Non-Convertible Debentures
Minimum Application 10 NCDs (Rs.10, 000) & in multiple of 1 NCD thereafter
Tenure 24, 36, 60, and 120 Months
Interest Payment frequency Monthly, Annually, and Cummulative
Listing BSE
Rating ICRA A+, CRISIL A+/Stable

Capital amortization options in Current NCD issue

  • 5-year NCD – 50% in Year 4 and 50% in year 5
  • 10 Year NCD – 20% from Year 6 to 10

Get 0.20% extra across all tenures if Edelweiss shares are bought on or before – 23rd Feb, 2024

Attractive Interest Rates

2Y: 9.50%, 3Y : 10%, 5Y: 10.50% and 10Y : 10.75%

NCD closes on 26th Feb, 2024. Out of INR 100cr Issue size, INR 71Cr already subscribed with healthy subscription from QIB, Corporate, HNI and Retail investors.