NIDO Home Finance Limited is currently launching a secured redeemable NCD IPO, which was previously operated under the name Edelweiss Housing Finance Limited. This unique offering provides potential investors with a chance to partake in a secure financial avenue. Through this investment opportunity, individuals can look forward to steady returns while witnessing the transformation of the organization’s brand identity over time. It’s a promising opportunity that combines financial security and the evolution of a trusted institution.
In this unique offering, individuals have the chance to not only secure their financial investments but also witness the gradual transformation of the organization’s brand identity. The transition from Edelweiss Housing Finance Limited to NIDO Home Finance Limited reflects the company’s commitment to growth and innovation.
In the table below, you can find all the necessary information about the upcoming NCD IPO from NIDO Home Finance Limited.
| Name of the issuer | NIDO HOME FINANCE LIMITED |
| Tenure | Upto 120 Months |
| Coupon | Upto 10.45% |
| Yield | Upto 10.46% |
| Issue Open date | August 30, 2023 |
| Issue Closure date | September 12, 2023** |
| Face Value | Rs.1000 |
| Nature of the Instrument | Secured Redeemable NCD |
| Minimum Application | 10 NCDs (Rs.10,000.00) & multiple of 1 NCD thereof |
| Listing | BSE |
| Rating | “CRISIL AA-/Negative”, “[ICRA] A+ (Stable)” |
| Issue Size | Base Issue of Rs.75 Cr with a Green Shoe option of Rs. 75Cr aggregating up to Rs. 150 Cr |
| Allotment Date | 18- Sep- 2023 |
| Listing Date | 20 –Sep – 2023 |
Issue Break Up
| Category | Allocation | Amount in Crore | |
| Base Issue in Crores | |||
| Institutional Investors | 10% | 7.50 | 15 |
| Non-Institutional Investors | 10% | 7.50 | 15 |
| HNI | 40% | 30 | 60 |
| Retail Individual Investors | 40% | 30 | 60 |
| Total | 100% | 75 | 150 |
Role of NIDO Home Finance Limited (Issuer)
NIDO Home Finance Limited, formerly identified as Edelweiss Housing Finance Limited, was established in Mumbai on May 30, 2008, as a publicly listed company under the legal framework of the Companies Act, 1956. This company operates as a housing finance entity without accepting deposits, with its primary emphasis on providing secured loan solutions tailored to individuals’ requirements. These solutions include smaller-sized loans aimed at customers within the affordable housing sector. The company functions as a component of the esteemed Edelweiss group, a prominent and diversified financial services conglomerate within India. This company offers a comprehensive range of financial services with a commitment to fulfilling the needs of its clients. The responsibilities they serve are as follows:
- Diversified Financial Services – The Edelweiss Group functions across various segments of the financial services sector, encompassing asset management, investment banking, wealth management, insurance, lending, and other areas. Its role involves providing top-notch services within each of these fields, ensuring excellence in service delivery.
- Client Engagement – Effectively engaging with clients stands as a key duty for Edelweiss. This entails comprehending individual financial needs, offering customized remedies, and cultivating robust client connections.
- Risk Management – A vital responsibility for Edelweiss is to guarantee proficient risk management throughout its diverse range of services. This encompasses the assessment of potential risks linked to investments, loans, and other financial dealings, as well as the execution of tactics to alleviate these risks.
- Giving Investment Advice – In the sector of wealth management and investment banking, Edelweiss holds the task of providing well-founded investment guidance. This encompasses market research, trend analysis, and furnishing clients with knowledge to make educated investment choices.
- Asset Management – Functioning as an asset management firm, Edelweiss bears the duty of overseeing diverse investment funds. This encompasses formulating investment choices, enhancing portfolio efficiency, and providing returns to investors.
- Lending Service– Edelweiss delivers lending solutions, encompassing personal loans, business loans, and targeted-purpose loans. Their responsibility involves evaluating the financial reliability of borrowers, defining suitable lending conditions, and overseeing the loan portfolio.
- Compliance – Edelweiss Group is required to follow different financial regulations and directives established by regulatory bodies. Upholding conformity with these regulations is a fundamental obligation to uphold the confidence of clients and stakeholders.
- Corporate Governance – The leadership of the Edelweiss Group holds the duty to guarantee clear and ethical corporate governance protocols. This entails upholding honesty in financial disclosures, valuing stakeholders’ concerns, and advocating conscientious business conduct.
Company Strengths
- Adequate Capitalization
Despite the challenging macroeconomic climate, the NIDO Home Finance Limited group has effectively raised funds from global investors across its various ventures. Since 2016, the group has secured Rs 4,400 crore in capital across lending, wealth management, and asset management sectors. This accomplishment has not only sustained the group’s capital position but has also absorbed risks associated with its assets. As of March 31, 2023, the group’s net worth stood at Rs 8,581 crore (compared to Rs 8,537 crore as of March 31, 2022).
Moreover, the leverage ratio has decreased to 2.45 times as of March 31, 2023, down from 2.6 times on March 31, 2022. This reduction is a result of embracing an asset-light approach, where the credit business operates through a co-lending model. Additionally, there’s an increased emphasis on fee-based enterprises like mutual funds and alternative assets, contributing to this shift. The gearing ratios were 3.2 times and 4.3 times as of March 31, 2021, and March 2020, respectively.
- Providing diversified Financial Services
NIDO Home Finance Limited operates as a diversified participant within the market of financial services, spanning four distinct sectors: Credit (both wholesale and retail), Insurance (both life and general), Asset management, and Asset reconstruction. The group has established competitive standings in the realm of alternate assets and asset reconstruction, and it is actively engaged in cultivating a prominent market presence in other sectors as well. This strategic focus is anticipated to enhance earnings stability over the long term.
The asset management division encompasses both mutual funds and alternate asset enterprises. The group has emerged as a leading figure within the alternate asset domain, with consistent growth observed in its mutual fund assets under management (AUM). Notably, the AUM within the asset management sphere has surged by over 4.5 times, reaching Rs 1,51,500 crore as of March 31, 2023, compared to the Rs 37,100 crore recorded as of March 31, 2019. Within this, mutual fund AUM stood at Rs 1,05,000 crore, while alternate asset AUM was at Rs 46,500 crore by the same date in 2023.
Credit Risk
The credit risk for NIDO Home Finance Limited is on a declining trend from the year 2012 to 2023 and the same is being depicted in the below table and graph.
| Year | Lending business gross stage 3 Asset (in Crores) | ROI |
| March 2023 | 945 | 12.5% |
| March 2022 | 930 | 7.4% |
| March 2021 | 1182 | 7.7% |
As the outstanding loan payment is declining so is good to invest in the NIDO Home Finance NCD IPO.
Conclusion
To wrap up, the introduction of the NIDO Home Finance Limited NCD IPO in August 2023 signifies a notable advancement in the company’s development. Formerly recognized as Edelweiss Housing Finance Limited, this rebranding mirrors the company’s dedication to advancement and originality. Through the issuance of a secured redeemable NCD IPO, NIDO Home Finance Limited offers potential investors a safe avenue for participation. This appealing prospect not only guarantees financial stability but also provides a distinctive opportunity to observe the company’s transformative journey. As investors look forward to consistent returns, they also align themselves with an establishment that places high regard on advancement and dependability.