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Nido Home Finance Limited is issuing Secured, Redeemable, Non-Convertible Debentures (NCDs) from June 13, 2024, to June 27, 2024. The base issue size is Rs 50 Crores, with an option to oversubscribe by another Rs 50 Crores, making the overall issue size Rs 100 Crores. Each NCD is priced at Rs 1000, with a face value of Rs 1000, and the minimum lot size is 10 NCDs, while the market lot is 1 NCD. These NCDs will be listed on the BSE and have a credit rating of CRISIL A+/Watch Negative. The tenors available are 24, 36, 60, and 120 months, spread across Series I to X, with payment frequencies offered on a monthly and annual basis. The allotment is on a first-come, first-served basis, and Beacon Trusteeship Limited is the debenture trustee.
| Particulars | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 |
| Frequency of Interest Payment | Annual | NA | Monthly | Annual | NA |
| Nature | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 36 Months | 36 Months | 36 Months |
| Coupon (% per Annum) | 9.50% | NA | 9.58% | 10.00% | NA |
| Effective Yield (% per Annum) | 9.50% | 9.50% | 10.01% | 10.00% | 10.00% |
| Amount on Maturity (In Rs.) | Rs 1,000 | Rs 1,199 | Rs 1,000 | Rs 1,000 | Rs 1,331.18 |
| Particulars | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 |
| Frequency of Interest Payment | Monthly | Annual | NA | Monthly | Annual |
| Nature | Secured | Secured | Secured | Secured | Secured |
| Tenor | 60 Months | 60 Months | 60 Months | 120 Months | 120 Months |
| Coupon (% per Annum) | 10.03% | 10.50% | NA | 10.26% | 10.75% |
| Effective Yield (% per Annum) | 10.50% | 10.49% | 10.50% | 10.75% | 10.74% |
| Amount on Maturity (In Rs.) | Rs 1,000. | Rs 1,000 | Rs 1,648.17 | Rs 1,000 | Rs 1,000 |
The company intends to utilize the net proceeds from the issue for onward lending, financing or refinancing its existing indebtedness, and/or debt servicing, which includes the payment of interest and the repayment or prepayment of interest and principal on existing borrowings. Additionally, the proceeds will be used for general corporate purposes.
The proposed NCDs (Non-Convertible Debentures) worth Rs 500 crore have been given a rating of “CRISIL A+/ Watch Negative” by CRISIL Ratings Limited.
Over the last two years, the company’s financial results show a total income and net profit of Rs. 444.69 crore and Rs. 16.06 crore for FY23, and Rs. 465.71 crore and Rs. 19.31 crore for FY24. As of March 31, 2024, the company has a paid-up equity capital of Rs. 69.35 crore, backed by free reserves of Rs. 745.44 crore.
The debt-equity ratio was 3.52 as of March 31, 2024, and will increase to 3.64 after this issue. The net non-performing assets (NPAs) have improved, standing at 1.19% compared to 1.46% the previous year.
Conclusion
The company has shown slight growth in both revenue and profit over the reported periods, along with an improvement in its net NPA position as of March 31, 2024. It offers attractive coupon rates with an A+ credit rating. Investors seeking steady income may consider investing for the medium to long term.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.
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