Nido Home Finance Limited is launching secured NCDs on March 13, 2025, offering interest rates of up to 11%. Company is a non deposit taking HFC company in India. In this article we would provide Nido Home Finance NCD March 2025 issue details, interest rates, credit ratings, risks and should you invest or avoid.
About Nido Home Finance Limited
Nido Home Finance Limited is a non-deposit taking Housing Finance Company that provides secured loan products, particularly small-ticket loans in the affordable housing category.
It is part of the Edelweiss Group, a leading diversified financial services group in India. Previously, it was known as Edelweiss Housing Finance Limited.
Loan Offerings:
- Home Loans (secured loans for salaried and self-employed individuals for property purchase/construction/renovation). These comprised 56.97% of the loan book (March 2023), 63.95% (March 2024), and 61.34% (June 2024).
- Non-Housing Loans (Loan Against Property – LAP) offered mainly to self-employed individuals against property collateral. Includes lease rental discounting where the lessee is a corporate entity.
- Construction Finance (loans to real estate developers for residential projects, secured by real estate collateral and linked to construction progress).
Nido Home Finance NCD – March 2025 Issue Details
| Subscription opening Date | 13-Mar-25 |
| Subscription closure Date | 27-Mar-25 |
| Issuing Security Name | Nido Home Finance Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | ₹ 75 Crores |
| Issue Size (Option to retain over subscription) | ₹ 75 Crores |
| Total issue size | ₹ 100 Crores |
| Issue price | ₹ 1,000 per bond |
| Face value | ₹ 1,000 per bond |
| Series | I to X |
| Minimum Lot size | 10 bonds and 1 bond there after |
| Tenure | 24, 36, 60 and 120 Months |
| Interest Payment frequency | Monthly or Yearly or on Maturity |
| Listing on | Within 6 working days on BSE |
| Lead Manager | Tipsons Consultancy Services Private Limited Nuvama Wealth Management Limited |
| Debenture Trustee/s | Beacon Trusteeship Limited |
Nido Home Finance NCD – March 2025 Interest Rates
| 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 |
| Tenure (months) | 24 | 24 | 36 | 36 | 36 | 60 | 60 | 60 | 120 | 120 |
| Coupon (% per Annum) | 9.50% | NA | 9.58% | 10.00% | NA | 10.03% | 10.50% | NA | 10.49% | 11.00% |
| Effective Yield (% per Annum) | 9.50% | 9.50% | 10.01% | 10.00% | 10.00% | 10.50% | 10.49% | 10.50% | 11.00% | 10.99% |
| Amount on Maturity (In ₹.) | 1,000.00 | 1,199.13 | 1,000.00 | 1,000.00 | 1,331.35 | 1,000* | 1,000* | 1,648.17 | 1,000** | 1,000** |
*Staggered Redemption in Two (2) annual payments of ₹500 each, starting from 4th Anniversary until Maturity
**Staggered Redemption in Five (5) annual payments of ₹200 each, starting from 6th Anniversary until maturity
Credit Rating
CRISIL Ratings has assigned CRISIL A+/ Watch Negative to this NCD issue. This indicates an adequate degree of safety in timely financial obligation servicing but also highlights potential risks.
Company’s Financial Performance
| Year | Net Profit (in Crores) |
| FY2021 | ₹ 3.72 |
| FY2022 | ₹ 13.8 |
| FY2023 | ₹ 16.06 |
| FY2024 | ₹ 19.3 |
Why Invest in Nido Home Finance NCD – March 2025?
✅ Attractive Interest Rates – Investors can earn up to 11% per annum, significantly higher than most bank FDs.
✅ Secured NCDs – Investors have priority in repayment if the company faces financial difficulties.
✅ Steady Profit Growth – The company has shown consistent profitability over the years.
Why Not to Invest?
❌ Regulatory Risks – As an HFC, the company is subject to evolving regulations that may impact business operations.
❌ Dependence on Capital Availability – A disruption in capital sources could affect its lending operations.
❌ Real Estate Exposure – Any downturn in the Indian real estate sector could impact the company’s loan book and collateral value.
❌ NBFC Risks – Previous NBFC defaults (like DHFL, IL&FS) serve as a cautionary example for investors.
Should You Invest in Nido Home Finance NCD March 2025?
Nido Home Finance’s secured NCDs offer high-interest rates, making them an attractive investment for those looking for better yields than traditional FDs. The company has been consistently profitable, and secured NCDs reduce risk compared to unsecured options.
However, investors must consider the risks associated with NBFCs, including credit rating concerns, liquidity risks, and regulatory changes. CRISIL A+/ Watch Negative signals adequate safety but some caution.
If you are a high-risk investor seeking higher returns, this NCD issue could be worth considering. However, if capital safety is your priority, high-interest FDs or government-backed bonds may be better alternatives.
Before investing, carefully read the Nido Home Finance NCD March 2025 prospectus for complete risk factors.
Discover more from Myinvestmentideas.com
Subscribe to get the latest posts sent to your email.