Nido Home Finance Limited NCD: A Secure Investment Opportunity

Nido Home Finance Limited (formerly known as Edelweiss Housing Finance Limited) is offering a public issue of Secured Redeemable Non-Convertible Debentures (NCDs), providing investors with a secure and attractive investment opportunity.

This blog post delves into the key details of the NCD issue, the company’s background, and why this could be a worthwhile addition to your investment portfolio.

Key Highlights of the NCD Issue

• Issue Opens: March 13, 2025
• Issue Closes: March 27, 2025
• Face Value: ₹1,000 per NCD
• Minimum Application: 10 NCDs (₹10,000) and in multiples of 1 NCD thereafter
• Listing: BSE
• Rating: CRISIL A+/Stable, indicating low credit risk and adequate safety for timely servicing of financial obligations.

Issue Breakdown

Category	Allocation	Amount in Mn (Base Issue Size)	Amount in Mn (Total Issue Size)
Institutional Investors	10%	75	150
Non-Institutional Investors	10%	75	150
HNI	40%	300	600
Retail Individual Investors	40%	300	600
Total	100%	750	1,500

Yield and Tenor Options

The NCDs offer various series with different tenors and interest payment frequencies, catering to diverse investor needs:

Series	Frequency of Interest Payment	Tenor (Months)	Coupon (% p.a.)	Effective Yield (% p.a.)
I	Annual	24	9.50%	9.50%
III	Monthly	36	9.58%	10.01%
IV	Annual	36	10.00%	9.99%
VI	Monthly	60	10.03%	10.50%
VII	Annual	60	10.50%	10.49%
IX	Monthly	120	10.49%	10.50%
X	Annual	120	11.00%	10.99%

Redemption Details

The NCDs offer staggered redemption options for certain series, providing flexibility in repayment schedules. For example, Series VI and VII NCDs have a 60-month tenor with staggered redemption starting from the 4th anniversary, while Series IX and X have a 120-month tenor with staggered redemption starting from the 6th anniversary.

About Nido Home Finance Limited

Nido Home Finance Limited, part of the Edelweiss Group, is a non-deposit-taking Housing Finance Company (HFC) focused on offering secured loan products to individuals, particularly in the affordable housing segment. The company has a strong presence with 67 branches across 67 cities and a loan book of approximately ₹3,032 crore as of December 2024.

Strategic Focus

• Granular Portfolio: Focus on small-ticket, self-employed, and informal income segments.
• Asset-Light Model: Co-lending tie-ups with marquee banks like State Bank of India and Standard Chartered.
• Data-Driven Approach: Utilization of data sciences for risk management, customer profiling, and operational efficiency.
• Liquidity Management: Long-term relationships with lenders and resource raising through securitization.

Financial Performance

As of Q3 FY25, Nido Home Finance reported a net worth of ₹819 crore and a loan book of ₹3,032 crore. The company has maintained a healthy Capital to Risk-Weighted Assets Ratio (CRAR) of 37.92% and a debt-equity ratio of 3.6 (including securitization liability).

Why Invest in Nido NCDs?

1. Secure Investment: The NCDs are secured, meaning they are backed by assets, providing an added layer of safety for investors.
2. Attractive Returns: With coupon rates ranging from 9.50% to 11.00% p.a., the NCDs offer competitive returns compared to other fixed-income instruments.
3. Diverse Tenor Options: Investors can choose from various tenors and interest payment frequencies, allowing for flexibility based on individual financial goals.
4. Strong Credit Rating: The CRISIL A+/Stable rating indicates a low credit risk, ensuring timely payment of interest and principal.
5. Experienced Management: Nido Home Finance is backed by an experienced board and management team with a proven track record in the financial services sector.

Conclusion

The Nido Home Finance NCD issue presents a compelling opportunity for investors seeking stable returns with a low-risk profile. With its strong financials, strategic focus on affordable housing, and robust governance, Nido Home Finance is well-positioned to deliver consistent performance. Whether you are a retail investor or a high-net-worth individual, the Nido NCDs offer a secure and attractive investment option to diversify your portfolio.

For more details, you can refer to the nido website and make an informed investment decision.

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Disclaimer: This blog post is for informational purposes only and should not be considered as investment advice. Investors are advised to read the prospectus and consult with financial advisors before making any investment decisions.