Nido Home NCD Sept. 24 issue review (May apply)

• This is the 5th debt offer from the company since July 2016.
• 2 debt offer in old name and 3 in the new name so far.
• The last debt issue was in the month of June 2024.
• The company offers lucrative coupon rates with A+ credit rating.
• Investors looking for a steady income may park funds for the medium to long term.

ABOUT COMPANY:
Nido Home Finance Ltd. (NHFL) (erstwhile known as Edelweiss Housing Finance Ltd.) is a non-deposit taking housing finance company focusing on offering secured loan products to suit the needs of the individuals, including small ticket loans to customers in the affordable housing category. It is a part of Edelweiss group which is one leading diversified financial services groups in India. Its products include home loans, non-housing loans including loan against property, and construction finance.

As of June 30, 2024 it has 67 offices in 67 cities in India. Over the past several years, it has diversified and expanded 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 has significant technology architecture to ensure industry leading customer experience. NHFL's operations are supported by 679 employees as on June 30, 2024.

ISSUE DETAILS:
The company is coming out with its 5th debt offer of 1000000 secured, redeemable, non-i.e. Rs. 1000), thereon, thereafter. Post allotment, NCDs will be listed on BSE. The company is spending Rs. 3.14 cr. for this debt offer and from the net proceeds, it will utilize at least 75% for onward lending, financing and for repayment/prepayment of existing borrowings with interest, and maximum up to 25% for general corporate purposes.

This debt offer is jointly lead managed by Tipsons Consultancy Services Pvt. Ltd., Nuvama Wealth Management Ltd. (erstwhile Edelweiss Securities Ltd., while KFin Technologies Ltd. is the registrar to the issue. Beacon Trusteeship Ltd. is the debenture Trustee.

The company is offering coupon rates ranging from 9.50% to 11.00% with a monthly/annual interest payment options. This debt issue has tenor of 24 months, 36 months, 60 months and 120 months. The company has allocated 10% for Institutional Investors, 10% for Non-Institutional Investors, 40% for HNIs and 40% for Retail investors.

CREDIT RATINGS:
This debt issue is rated CRISIL A+ / Watch Negative by CRISIL Ratings Ltd. Securities with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such securities carry low credit risk. The rating watch reflects an emerging situation, which may affect the credit profile of the rated entity. The rating is not a recommendation to buy, sell or hold securities and investors should take their own decision. The rating given by CRISIL Ratings Limited is valid as on the date of this Prospectus and shall remain valid until the ratings are revised or withdrawn.

The rating may be subject to revision or withdrawal at any time by the assigning rating agency and each rating should be evaluated independently of any other rating. The rating agency has a right to suspend or withdraw the rating at any time on the basis of factors such as new information.

FINANCIAL PERFORMANCE:
On the financial performance front, for the last two fiscals, the company has posted a total income/net profit of Rs. 444.69 cr. / Rs. 16.06 cr. (FY23), and Rs.465.71 cr. / Rs. 19.31 cr. (FY24. For Q1 of FY25 ended on June 30, 2024, it earned a net profit of Rs. 0.89 cr. on a total revenue of Rs. 120.48 cr.

Its debt equity ratio as of March 31, 2024 at 3.52 will stand enhanced to 3.64 post this issue. As of the said date, its net NPAs stood at 1.19 against 1.46 for corresponding previous period.

Conclusion / Investment Strategy

The company has posted marginal growth in its top and bottom lines for the reported periods. It has marked improvement in its net NPA position as of March 31, 2024. It offers lucrative coupon rates with A+ credit rating. Investors looking for steady income may park funds for the medium to long term.

Review By Dilip Davda on September 17, 2024

Review Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor before making any actual investment decisions, based on the information published here. My reviews do not cover GMP market and operators game plans. Any reader taking decisions based on any information published here does so entirely at their own risk. Investors should bear in mind that any investment in stock markets is subject to unpredictable market-related risks. The above information is based on RHP and other documents available as of date coupled with market perception. The author has no plans to invest in this offer.

About Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

(Dilip Davda -SEBI registered Research Analyst-Mumbai,

Registration no. INH000003127 (Perpetual)

Email id: dilip_davda@rediffmail.com ).

The Nido Home Finance NCD September 2024 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if Nido Home Finance NCD September 2024 worth investing. The Nido Home Finance NCD September 2024 Note sets the NCD expectations in systematic way which tells you if Nido Home Finance NCD September 2024 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in Nido Home Finance NCD September 2024 by providing NCD recommendations i.e. subscribe, avoid and neutral.

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Nido Home NCD Sept. 24 issue review (May apply)

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