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.
Also Read: Manappuram NCD – Jan-2014 – Should you invest?
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 ₹ 1,000.
- Minimum investment is for 10 bonds means, you need to invest for a minimum of ₹ 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 (₹) | Interest payment | Coupon Rate (Interest) Individuals | Effective yield per annum | Maturity Value |
| 1 | 36 | 1,000 | Monthly | 11.60% | 12.24% | 1,000 |
| 2 | 36 | 1,000 | Cumulative | NA | 12.24% | 1,414 |
| 3 | 60 | 1,000 | Monthly | 11.85% | 12.52% | 1,000 |
| 4 | 60 | 1,000 | Cumulative | NA | 12.52% | 1,803 |
How is the company is doing in terms of profits?
Its profits are as below:
- Year ended Mar-2011 – ₹ 101.81 Crores
- Year ended Mar-2012 – ₹ 80.95 Crores
- Year ended Mar-2013 – ₹ 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.
Also Read: Top tax saving mutual funds (ELSS) to invest for 2014
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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Suresh
Edelweiss ECL Finance NCD January, 2014
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I held ncd no 001288 certificate no 1108 from 28.1.14 to 28.1.2017. The income tax deducted from 1.4.2017 to 28.1.2017 is not shown in my form 26AS.kindly do the needful. I may also be informed.
I , together with my family members, hold ECL finance Ltd. NCDs (Option II) vide debenture certificate Nos. 002487 to 002491 , which are maturing on 28th January for repayment
pl let me know the precedure for redumption
pl clarify whether certificates need to be surrendered , duly discharged ……….. or repayment amounts will be directly credited into specified bank accounts without the surrender of certificates
if certificates are to be surrendered , where should they be sent
Dear Sir,
I applied for 500NCD of Edelweiss which ws closing date 27th Jan. 2014. Interest payment was monthly basis. I did receive first payment of interest for period between strat date and closing date, but 1st monthly installment of interest, I have not received yet. Can you please tell, me what is pay out date for monthly interest of this NCD?.
Hi Ram, This would depend on the record date. If you have received the NCD, it would indicate the same. What is the record date ?
Hi,
I have invested in ECL NCD 30,000/- through Edelweiss and edelweiss agent [SAIDULU MADASU] took the chque and form fill up.
After cheque debited from my a/c, local edelweiss office Banjara Hills, Hyderbad not taking the responsibility and not to helping me
with my investment.
At the time of investment edelweiss agent told that NCD can be bought directly without dmat but later need dmat to sale it after 5 year.
I do not how to get the certificate and when I get that.
I have visited several times to Edelweiss office and called several times and requested agent
too to provide me the certificate but they are simply not taking care of.
So I am anxious my money has been cheated, then why I am not getting my NCD certificate?
Thanks-
Dhiraj Patra
below are details about investment application no. 40049206
Dhiraj, Sad to hear about this. Pls log complaint with SEBI under compliant section. Pls visit http://www.sebi.gov.in for more info.
I would like to know if interest calculation is done on a pro rata basis if the NCD is bought in the middle of the month via NSE/BSE. For example someone invests Rs. 1 lakh at 12% coupon rate, monthly payout, that is Rs. 12,000 per annum which is Rs. 1000 per month payout for the investor who bought the NCDs during IPO. Lets say the record date is 1st of every month. If the IPO investor sells his bond online on the 15th of a month, how is the interest calculated? Will both the buyer and seller get interest for 15 days, Rs. 500 each, on the next record date?
Hi Krishna, Calculation is simple. Who ever holds the bond on record date would get the entire month interset. If you hold the bond on 1st and 1st is the cut-off date, then entire month interest is paid to you.
You are very kind, sir. You ALWAYS post informative, useful material… always provide the right answers… hats off to you.. please keep up the good work so that the commoner can benefit…
Don't do business with Edelweiss Financial Service Ltd. I opened trading account in Edelweiss there its agent did authorized trading and made loss for me. Now they are not entertaining my complaint. In India law is not rigid as it should be. It is long story. In first hand these type of companies should not be allowed to do business. Now I do business with the most branded and few ones. Remember you can't get justice if something will go wrong.
Bad to hear your story Nikhil. However these two are different things. One is you are talking about demat account with them and their agent cheating you by making a trade and making you loss. Here this is Secured NCD. In case of any issue with the company, investors can get their capital. There could be some delay, but these are secured. However I take your point in my future articles in case of demat account recommendation.
Hi Suresh,
Thanks for quick review as always.
Now I have a query in general regarding ASBA.SEBI says 5 applications can be submitted from one bank account.So does this mean 5 different unrelated people can apply from one bank account even though they may not be account holder with the bank?
Thanks
No Saurabh. Like you apply for IPO’s in different lots, you can apply in different lots for NCD’s also.
An analysis on "Tax Treatment" and returns "Post Tax" for all Income Brackets will definitely make the article more interesting.
The same is recommended for inclusion in all your further articles for investments.
You may dwell upon writing an article on the remaining issues of Tax Free Bonds 2013-2014 with likely interest rates, companies which have filed their Prospectus for TFB and those who are yet to do so.
Thanks for the suggestion Bakshi. I would provide such analysis in all future articles. Keep reading my blog and give suggestions.