“Grab the opportunity & Feel the beat and invest in Edelweiss IPO”
Ride the wave of capital preservation. Connect your friends and family. Call if you have to, but don’t miss out on the bidding of the IPO bond. Edelweiss Housing Finance Limited is all set to open the gates for investors for IPO bidding on April 6th this year.
Edelweiss Housing Finance Limited (“EHFL”), is a non-deposit-taking Housing Finance Company focused on offering secured loan products to suit the needs of individuals, including small ticket unsecured loans to its customers mainly in rural areas, and corporates. It is a part of the Edelweiss group which is one leading diversified financial services groups in India. It has obtained a Certificate of Registration dated March 18, 2010, bearing registration no. 03.0081.10 issued by the National Housing Bank, to commence/carry on the business of a housing finance institution without accepting public deposits subject to the conditions mentioned in the Certificate of Registration.
The Edelweiss Housing Finance Ltd NCD IPO has been rated “CRISIL AA-/Negative (pronounced as CRISIL double A-minus rating with Negative outlook)” and “ACUTE AA/ Negative (pronounced as ACUTE double-A rating with Negative outlook)”. All you need to do is set a reminder on the Bondsindia.com website and place your bid as we send you a reminder when it goes live.
About the NCD Issue (company stats, standings, etc.)
| Issuer | EDELWEISS HOUSING FINANCE LIMITED |
|---|---|
| Type of instrument | Secured, Redeemable, Non-Convertible Debenture |
| Listing | To be listed on BSE |
| Issue Size | Public issue by the Company of secured redeemable non-convertible debentures of the face value of ₹1,000 each (“NCDs”) for an amount up to ₹ 1,500 MILLION (“Base Issue Size”) with an option To Retain over-subscription Up To ₹ 1,500 Million aggregating UP TO ₹ 3,000 MILLION. |
| Issue Price | Rs.1,000 per NCD |
| Minimum Investment | 10 NCDs (Rs.10, 000) & in multiple of 1NCD |
| Issue Opening Date | Wednesday, April 6, 2022 |
| Issue Closing Date | Tuesday, April 26, 2022, * *Issue may close on such earlier date or an extended date as may be decided by the Board of Directors of the Company or Securities |
| Mode of Issuance | Dematerialized mode only |
NCD IPO ISSUE STRUCTURE
SPECIFIC TERMS FOR EACH SERIES OF NCDs
| Series | I | II | III | IV | V | VI | VII | VIII | IX | X |
| frequency of interest payment | Annual | Cumulative | Monthly | Annual | Cumulative | Monthly | Annual | Cumulative | Monthly | Annual |
| Minimum Application | Rs 10000 (10 NCDs) across all Series | |||||||||
| face value/issue price | Rs 1000 | |||||||||
| In multiples of thereafter | Rs 10000 (1 NCD) | |||||||||
| Tenure | 24 | 24 | 36 | 36 | 36 | 60 | 60 | 60 | 120 | 120 |
| coupon (%per annum) for NCD Holders in Category 1, 2, 3, & 4 | 8.50% | NA | 8.70% | 9.05% | NA | 9.15% | 9.55% | NA | 9.30% | 9.70% |
| Effective Yield (per annum) For NCD holders in Category 1, 2, 3, & 4 | 8.49% | 8.50% | 9.05% | 9.04% | 9.05% | 9.54% | 9.54% | 9.55% | 9.70% | 9.69% |
| Mode of Interest Payment | Through various modes available | |||||||||
| Amount (NCD)on Maturity for NCD Holders in Category 1,2,3,&4 | 1,000 | 1,170.50 | 1,000 | 1,000 | 1,297.15 | 1,000 | 1,000 | 1,578.25 | 1,000 | 1,000 |
| Maturity / Redemption Date (years from the Deemed date of Allotment) | 24 Months | 24 Months | 36 Months | 36 Months | 36 Months | 60 Months | 60 Months | 60 Months | 120 Months | 120 Months |
| Put and call option | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA |
*The Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series.
1. Concerning Series where interest is to be paid on an annual basis, relevant interest will be paid on each anniversary of the Deemed Date of Allotment on the face value of the NCDs.The last interest payment under the annual Series will be made at the time of redemption of the NCDs.
2. Concerning Series where interest is to be paid on monthly basis, relevant interest will be paid on the first date of every month on the face value of the NCDs. The last interest payment under the annual Series will be made at the time of redemption of the NCDs.
3. Subject to applicable tax deducted at source, if any.
4. Please refer to Schedule E of the Prospectus for details about the cash flows of the Company by the SEBI Operational circular All Categories of Investors in the proposed Issue who are also holders of NCD(s)/Bond(s) previously issued by the Company, and/ or ECL Finance Limited, Edelweiss Financial Services Limited, Edelweiss Retail Finance Limited, and Edelweiss Finance & Investments Limited as the case may be, and/or are equity shareholder(s) of Edelweiss Financial Services Limited as the case may be, on the Deemed Date of Allotment and applying in Series I, Series III, Series IV, Series VI, Series VII, Series IX and/or Series X shall be eligible for an additional incentive of 0.20% p.a. provided the NCDs issued under the proposed Issue are held by the investors on the relevant Record Date applicable for payment of respective coupons, in respect of Series I, Series III, Series IV, Series VI, Series VII, Series IX and/or Series X.
For all Categories of Investors in the proposed Issue who are also holders of NCD(s)/Bond(s) previously issued by the Company, and/ or ECL Finance Limited, Edelweiss Financial Services Limited, Edelweiss Retail Finance Limited, and Edelweiss Finance & Investments Limited as the case may be, and/or are equity shareholder(s) of Edelweiss Financial Services Limited as the case may be, on the Deemed Date of Allotment applying in Series II, Series V and/or VIII, the maturity amount at redemption along with the additional yield would be ₹ 1,181.85 per NCD, ₹ 1,304.30 per NCD and/or ₹ 1,592.70 per NCD respectively provided the NCDs issued under the proposed Issue are held by the investors on the relevant Record Date applicable for redemption in respect of Series II, Series V and/or Series VIII.
The additional incentive will be a maximum of 0.20% p.a. for all Category of Investors in the proposed Issue, who are also holders of NCD(s)/Bond(s) previously issued by the Company, and/ or ECL Finance Limited, Edelweiss Financial Services Limited, Edelweiss Retail Finance Limited and Edelweiss Finance & Investments Limited as the case may be, and/or are equity shareholder(s) of Edelweiss Financial Services Limited as the case may be], on the deemed date of allotment. On any relevant Record Date, the Registrar and/or the Company shall determine the list of the Primary holder(s) of this Issue and identify such Investor/ NCD Holders, (based on their DP identification and /or PAN and/or entries in the Register of NCD Holders) and make the requisite payment of additional incentive. The additional incentive will be given only on the NCDs allotted in this Issue i.e. to the Primary holder(s).
In case any NCD is bought/acquired from the secondary market or from the open market, the additional incentive will not be paid on such bought/acquired NCD. In case the Primary holder(s) sells/gifts/transfer any NCDs allotted in this Issue, the additional incentive will not be paid on such sold/gifted/transferred NCD except in the case where NCDs are transferred to the Joint holder/Nominee in case of death of the primary holders
Financial Performance (Rs. Crores)
AUM – Rs. 3645.36 Crores
GNPA – 3.80%
NPA – 2.98%
Key Strengths
- Adequate Capitalisation, Supported by Multiple Capital raises
The Edelweiss group has demonstrated its ability to raise capital from global investors, across businesses, despite the tough Macro environment. The group has raised more than Rs.3,700 Crores over the past 24 months across the lending, wealth management, and asset management businesses.
- Diversified financial services player, with demonstrated ability to build significant competitive positions across businesses
Edelweiss Group is a diversified financial services player with a presence across various businesses including asset management, Wealth Management, Life Insurance, General Insurance, Asset Reconstruction, alternate assets, broking, investment banking, retail finance, and wholesale finance. This group has attained sizeable scale in many of these businesses over a period which is likely to lend greater stability to earnings over time.
- Pan-India distribution network – EHFL pan-India network spanned a total of 68 offices in 67 major Indian cities as of December 31, 2021. Their extensive network enables them to acquire more customers for retail businesses where increased profitability and ROE are based upon the increased scale of business. The retail customer base was approximately 22,500 as of March 31, 2021, and was approximately 21,500 as of December 31, 2021.
- Access to a range of cost-effective funding sources – The funding requirements are predominantly sourced through credit facilities from banks, NHB, and the issuance of redeemable non-convertible debentures on a private placement basis/through public issuance. They have, throughout the last few years, accessed funds from multiple classes of credit providers, including nationalized banks, private Indian banks, and mutual funds. Access to low-cost borrowings under the NHB refinance window helps them reduce the cost of borrowings. They have developed stable long-term relationships with the lenders and established a track record of the timely servicing of the debts. Total Borrowings were ₹ 34,813.73 million as of March 31, 2021, and ₹ 28,192.30 million as of December 31, 2021.
- Effective Use of Technology, Analytics, and Credit Bureau – They believe that the robust loan management system, analytic ability, and extensive usage of the credit bureau and other allied KYC procedures offer a significant competitive advantage. The systems have the capability of end-to-end customer data capture, computation of income, collateral data capture, and repayment management. The loan approval is controlled by the loan application system. They believe that monthly analytics reports including through–the-door and credit–information tracking are efficient tools for ensuring risk management-controls & compliance.
Credit Risks
- Asset Quality remains vulnerable
Overall stage III asset ratio rose to 7.7% as of March 31, 2021, compared to 5.3% as of March 31, 2020. The deterioration in asset quality in the last few years was majorly on account of the wholesale segment. In fiscal 2021, the retail segment has also been adversely impacted on account of the pandemic. The group’s weak assets, including a portion of the security receipts, is higher than that of its peer. Although during the first half of fiscal 2022, the overall stage III ratio has improved to 4.5%.
- Lower profitability than Peers.
Profitability has been lower than those of other large, financial sector groups. It was significantly impacted in the last few quarters by higher credit costs.
- Moderation in Profitability indicators
The group reported moderate profitability for FY 2021 with a profit after tax of Rs.254 Cr. driven by one time gain of Rs. 1,400 Cr. reported on the sale of a majority stake in wealth management business to PAG. The future trend in Credit costs will be linked to the fresh slippages in both the segments, i.e., retail as well wholesale segments.
How to invest in Edelweiss Housing Finance Limited April 2022 NCD IPO?
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Place your bid in three simple steps
| Key in Basic Details> | Choose the IPO Series> | Place the bid |
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How to invest in Edelweiss Housing Finance Limited April 2022 NCD IPO?
The application process on the Bonds India platform is simple and seamless.
- Click on Apply Now on Edelweiss Housing Finance NCD IPO Page.
- Fill in the Application form with the basic details such as name, email address, mobile number, Pan details, bank, and Demat details).
- Then, confirm the quantity and price and select a payment method.
- That’s all folks bidding complete!