Nido Home Finance Limited (formerly Edelweiss Housing Finance Limited) has launched its secured Non-Convertible Debenture (NCD) issue in June 2025. This public issue aims to raise ₹ 150 crores and offers attractive interest rates up to 10.75% per annum. With a wide range of tenure options and monthly/annual interest payouts, investors may find this NCD a good opportunity. In this article, we will provide a comprehensive review of the Nido Home Finance NCD June 2025 issue, including company background, NCD details, financials, risks, and whether you should invest.
About Nido Home Finance Limited
Nido Home Finance Limited, incorporated in 2008, is a non-deposit-taking housing finance company. It offers credit for home loans, construction loans, and loans against property. The company is a part of the Edelweiss Group, one of India’s leading financial services conglomerates.
Nido Home Finance operates with 67 branches across India and has a workforce of 702 employees. It has received several awards in 2023 for excellence in analytics and risk management, highlighting its focus on data-driven lending and operational efficiency.
NCD Issue Details – June 2025
- Issue Opening Date: June 17, 2025
- Issue Closing Date: June 30, 2025
- Issue Size (Base + Oversubscription): ₹ 150 Crores
- Face Value: ₹ 1,000 per NCD
- Minimum Investment: ₹ 10,000 (10 NCDs)
- Listing: BSE
- Allotment Basis: First Come, First Serve
- Debenture Trustee: Beacon Trusteeship Limited
NCD Coupon Rates and Tenure
| Series | Tenure | Interest Payment | Coupon Rate (p.a.) | Effective Yield (p.a.) |
|---|---|---|---|---|
| I | 24 months | Annual | 9.25% | 9.25% |
| III | 36 months | Monthly | 9.57% | 10.00% |
| IV | 36 months | Annual | 10.00% | 9.99% |
| VI | 60 months | Monthly | 9.85% | 10.30% |
| VII | 60 months | Annual | 10.30% | 10.29% |
| IX | 120 months | Monthly | 10.25% | 10.74% |
| X | 120 months | Annual | 10.75% | 10.74% |
Credit Ratings
- CRISIL Rating: CRISIL A+ (Stable)
These ratings suggest that the instrument is considered to have adequate safety with low credit risk.
Objects of the Issue
The proceeds from the NCD issue will be used for:
- Onward lending and financing activities
- Repayment/prepayment of interest and principal of existing borrowings
- General corporate purposes
Company Financials
| Period Ended | Revenue (₹ Cr) | PAT (₹ Cr) | Assets (₹ Cr) |
|---|---|---|---|
| Mar 2023 | 444.69 | 16.30 | 3,786.24 |
| Mar 2024 | 464.84 | 19.25 | 3,764.95 |
| Mar 2025 | 520.63 | 18.43 | 4,051.62 |
Revenue grew by 12% YoY in FY25, though profit declined slightly by 4%. Assets have shown consistent growth, which reflects business expansion.
Why to Invest in Nido Home Finance NCD June 2025?
- Attractive Interest Rates: Coupon rates up to 10.75% are higher than most fixed deposits.
- Multiple Tenure Options: Investors can choose between 24 to 120 months based on their needs.
- Monthly/Annual Payouts: Option to receive monthly income makes it ideal for retirees or those seeking regular cash flow.
- Secured NCDs: These NCDs are backed by assets, providing a cushion in case of default.
- First Come First Serve: Early applicants stand a better chance of allotment.
Why Not to Invest?
- Interest Rate Risk: If interest rates rise in future, current NCDs may look less attractive.
- Liquidity Risk: NCDs are listed, but secondary market trading may be limited.
- Company Profit Decline: Slight dip in profits could indicate margin pressures.
How to Apply?
- You can apply for these NCDs through your Demat account with platforms like Zerodha, Upstox, or ICICIDirect.
- Ensure KYC is updated and sufficient funds are available.
- Select appropriate series based on your preferred payout frequency and tenure.
Should You Invest in Nido Home Finance NCD June 2025?
Nido Home Finance NCDs offer attractive interest rates with tenures up to 10 years, catering to both short and long-term investors. Being secured in nature and backed by a reputed group, they provide a reasonable safety cushion. Investors should not forget that earlier NBFCs have delayed the repayment of capital and interest which carries major risk.
Investors who can take moderate risk and are looking for higher fixed income returns than bank FDs may consider investing in this NCD issue. Conservative investors or those worried about credit quality may skip it.
FAQs
- What is the interest rate offered in Nido Home Finance NCD June 2025?
The interest rate ranges from 9.25% to 10.75% depending on the tenure and interest payout option. - Is this NCD issue secured or unsecured?
This is a secured NCD issue backed by the company’s assets. - What is the credit rating of the NCD?
CRISIL has rated it A+ (Stable). - Who can apply for this NCD?
All resident individuals, HNIs, NRIs (on non-repatriation basis), companies, and trusts can apply. - How will interest be paid to investors?
Interest can be paid monthly or annually, depending on the series selected. - How is the allotment done?
Allotment is done on a first come first serve basis. - Can I sell these NCDs before maturity?
Yes, they are listed on BSE, but liquidity might be limited.
This review is for informational purposes. Investors should read the NCD prospectus and consult their financial advisor before investing.
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