12.52% Edelweiss ECL Finance Secured NCD-Jan-2014
After recent issues of Muthoot Finance NCD, Manappuram NCD, SREI NCD, one more company Edelweiss ECL Finance is issuing secured non-convertible debentures (NCD). It comes with 4 different options where the tenure is for 36 months and 60 months with monthly and cumulative options. These NCD’s provide an attractive annualized yield up to 12.52% per annum. Can we invest in Edelweiss ECL Finance NCD? What are its features and what risks are involved if we invest in Edelweiss NCD of Jan-2014.
About Edelweiss Group
The Edelweiss Group is a large, diversified organization spanning the entire spectrum of financial products and services. It offers a gamut of products and services across all major asset classes and diverse consumer segments (including Corporations, Institutions and Individuals) across India and the World. Its businesses are broadly divided into Credit including Retail & Housing Finance, Life Insurance, Commodities and Financial Markets including Asset Management.
Edelweiss ECL Finance NCD
Edelweiss Finance is issuing 4 options of NCD’s which are secured in nature. For secured NCD the assets are backed up for principal and interest. In case unforeseen thing happening to the company, investors of NCD would still get their principal investment and interest.
Features of Edelweiss Finance NCD
- Issue start date: 16-Jan-2014
- Issue end date: 27-Jan-2014.
- NCD’s are available in 4 different options.
- Interest payable monthly or at maturity depending on the option of NCD.
- Face value of the NCD bond is Rs 1,000.
- Minimum investment is for 10 bonds means, you need to invest for a minimum of Rs 10,000. Beyond this you can invest in multiples of 1 bond.
- These NCD bonds would be listed on BSE. Hence these are liquid investments.
- Non Resident Indians on repatriation as well as a non – repatriation basis can apply
- Company has Identified immovable property and standard business receivables against whom NCD’s are secured.
- NCD ratings 'CARE AA' [Double A] by Care and 'BWR AA (Outlook: Stable)' by Brickwork
- Prospectus of Edelweiss ECL Finance NCD
Below are the Interest rates details
|Edelweiss ECL Finance NCD – Jan-2014|
|Option||Tenure (Months)||Face Value (Rs)||Interest payment||Coupon Rate (Interest) Individuals||Effective yield per annum||Maturity Value|
How is the company is doing in terms of profits?
Its profits are as below:
- Year ended Mar-2011 – Rs 101.81 Crores
- Year ended Mar-2012 – Rs 80.95 Crores
- Year ended Mar-2013 – Rs 121.16 Crores
Non Performing Assets (NPA) of the company are 0.11% (FY2011-12) Vs 0.16% (FY 2012-13).
Why to invest?
- Company is earning good profits in the last 3 years. However its profits declined in the last 2 years.
- It offers secure NCD’s where your money is safe. Means in case of any unforeseen thing happening to companies, investors of NCD would still receive the principal and interest. Hence it is safe to invest in such secured NCD’s.
- Attractive interest rates between 11.60% and 11.85% per annum. Yield works out to be 12.24% and 12.52% respectively.
Why not to invest?
- Increase in NPA’s for the year ending Mar-2013 is a major concern.
How to apply?
You can apply online with any of the broker where you are maintaining a demat account. You can also directly call Edelweiss ECL Finance company and fill online form or physical forms.
Conclusion: Recently Manappuram NCD’s issue came up which are also secured offering high rate of interest. You can invest in Edelweiss ECL Finance NCD’s too. However, you should consider the risks involved in investing such companies. Though your investment and interest are secured, in case of nonperformance of the company, your payment may get delayed.
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Edelweiss ECL Finance NCD January, 2014
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