Edelweiss NCD

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ECL Financial Ltd, one of the groups of Edelweiss Capital, is India’s leading and diversified financial services companies offering Edelweiss NCD with the good interest payoff since 2014. This offers the opportunity to the investors to earn good interest rates thus increase their income in a short time.

Edelweiss has a large client base that includes corporations, institutions, and individuals. It caters the diverse investment and a broad range of customized financial services like credit, franchise and advisory businesses.

Edelweiss NCD Review

NCD or Non-Convertible Debenture is one of the best ways to invest in debt. It is the financial asset that offers the way to investors for earning good interest at a regular interval of time.

Like an IPO, that is issued by companies to raise capital, NCD or Non-Convertible Debenture is issued by the corporates for the capital. This kind of investment is purely a debt in which the well-rated companies take a loan from investors and provide interest at the regular interval.

Generally, these debentures are not converted into stocks and therefore they are named as a non-convertible debenture. Since they are non-convertible the interest rate is quite higher than the other convertible debenture.

Here are some of the top features of the latest Edelweiss NCD 2019:

  • The NCD issue began on Nov 04, 2019 and will end on Nov 22, 2019.
  • The allotment based on a first-come, first-serve basis.
  • It will be offered in the 7 different options of tenure that range from 24 months to 10 years.
  • Edelweiss offers the secured redeemable NCD thus offering more security of the capital.
  • There are different options for the interest payoff and thus investors can get interested every month, a year or on the maturity of the tenure.
  • NCD bond has the face value of ₹1000 and the minimum investment for 10 bonds i.e. the investors need to invest for a minimum of ₹10,000.
  • The investor can invest in more than one bond.
  • The NCD bond would be listed on BSE.

Edelweiss Secured NCD

Edelweiss offered secured NCD on November 04, 2019 in which the principal amount of the investors issued in terms of Draft Shelf Prospectus, this Shelf Prospectus and the respective Tranche Prospectus along with the interest due on the particular NCDs.

The company can, however, decide the exclusive charge on identified receivables and a “pari paasu” charge (equivalent charge in English) in favour of the Debenture Trustee on the identified immovable property of the company.

Also, the charge can be decided mutually by the company or Debenture Trustee while filing the relevant Tranche Prospectus.

The company will take all the essential measures of security in favour of Debenture Trustee for the NCD holders to assure the 100% security of the invested capital in the NCD.

There are many reasons why investors are more attracted towards investing in NCD.

The top reasons why investors are investing more in Edelweiss NCD are:

1. Good interest rates

NCD investment offers a good rate of interest and returns on the investment that varies from 10-12%. This is higher than other investment plans like the fixed deposit (FD).

With the maturity period from 24 months to 60 months, of the Edelweiss NCD, one can avail various payout options like monthly, quarterly, semi-annually and annual payments. One can choose the option that goes best with their needs.

Thus, it offers great flexibility to the investors to plan the tenure as per their investment goals.

2. Liquidity

Since the NCD is listed on the stock exchange the investment done on Edelweiss NCDs is easy to withdraw.

Although it is quite difficult to redeem the investment done in NCD than selling a regular stock it offers more liquidity than bank fixed deposits.

3. Easy to Apply

Edelweiss issues NCD for the limited time and offers the online way for the investors who show their interest in investing in it.

Also, to apply for the Edelweiss NCD there is no requirement of any broking account. One can apply directly using their Demat account details.

4. Ratings

The company that offers NCD bond are provided with the credit rating by the agencies like CRISIL, CARE, ICRA, etc. The company with a good credit rate assures lesser risk of investment thus assuring investors security of their capital.

Edelweiss is rated AA by both CRISIL and CARE that enlist it under the good company to invest in.

5. Risk

The unsecured NCD is riskier than the secured NCD. The investor can check the company’s background, ratings, and repayment history before investing.

Edelweiss NCD is secured thus, there are lesses chances of losing money.


Edelweiss NCD 2018

Edelweiss has been making the public NCD issues since 2014 with the issue of NCD in April, July, and December.

Like this year, Edelweiss NCD 2018 was available for different times and with payout options that are known as Series. According to the data, the best rate offered for NCD for 120 months or 10 years offering was 10.6%.

Edelweiss NCD 2018 does not offer a cumulative option for the tenure of 10 years.

The minimum investment in the NCD 2018 was Rupees 10,000 i.e 10 NCD for 1000 each.


ECL Finance NCD 2019

Edelweiss NCD announced a Tranche-I of Rs 1,000 crores Secured Non-Convertible Debenture issued on 10th May 2019 and closed on 07th June 2019 with the effective yield of 10.42% per annum.

The company announced a Tranche-II on November 04, 2019. The plan offers the client to yield up to 10.41% interest rates.

People can earn huge profits on their capital by investing it in the Edelweiss secured Non-Convertible Debenture.

The biggest categories of the company are Structured Collateralised Credits and Loans against securities. These two services contribute 22% and 30% respectively in the firm loan book.

With the latest NCD issue, the company can further expand its existing line of business.

Since the NCD issue of Edelweiss offers the high-interest rate, but do you think that this is the only reason why investors are more attracted to it. Grab the best understanding of this new Edelweiss NCD and decide whether or not to invest in the plan before you miss the opportunity.


Edelweiss NCD Issue

ECL Finance Limited issued secured and redeemable Non-Convertible Debenture (NCD) of 1000 crores with 9 different options that include the NCD tenure of 24 months, 39 months, 60 months, 120 months, etc on November 04, 2019.

The Edelweiss NCD issue 2019 will close on November 22, 2019, with the allotment status of a first come serve basis.

The minimum application for the NCD is 10 with ₹1000 NCD each.

The credit rating for the new issue of Edelweiss by CRISIL and ICRA is AA respectively. Although this rating is not the best as per the credit rating ladder that considers AAA the best, the Edelweiss NCD is ranked the same since 2014.

The Edelweiss NCD issue has the face value of Rs 1000 for each NCD with the base issue size of ₹1,000 Million. Also, it offers an oversubscription of ₹4000 Million that collects almost 5,000,000 NCDs corresponding to the amount of ₹5,000 Million.

The rate of interest for the 24 months is 9.30% while for 120 months it is equal to 10.40% with no cumulative option available for the tenure of 10 years.

The NCD is reserved 20% each for QIB and Corporates while 30% each for HNI and Retail.

Below is the Edelweiss NCD issue highlights:

The following table covers the complete detail of the Edelweiss NCD issue breakup. Edelweiss NCD Issue Breakup:


Edelweiss NCD Interest Rates

The effective yield for the Edelweiss NCD per annum can be found in the table below.

Specific Terms For Edelweiss NCD Series:

Apart from the above, the additional incentive of 0.25% per annum will be provided to all categories of investors in the issue who are also the holder of NCDs/ bond that was previously issued by the company and who are the equal shareholder of Promoter, Edelweiss Financial Services Limited (“EFSL”) on the date of allotment.


Edelweiss NCD Form

To download the form follow the steps as mentioned below.

  • Visit the Edelweiss website.
  • To download the form click on the bar application form.
  • The new screen opens.
  • Fill the details like the number of copies, sub-broker code, form type and click on the submit button.
  • To download the Edelweiss NCD form, click here.

Edelweiss NCD Allotment Status

After investing in the Edelweiss NCD bond one can check the allotment status online by following the steps below:

  • Visit the Edelweiss allotment status page.
  • Click on the button Edelweiss IPO Allotment Status marked as green.
  • Enter the details: PAN number, Application Number, Client ID of the Demat Account.
  • Enter Captcha.
  • Click on the search bar
  • Your allotment status will be opened on the screen.

*If the allotment status button is disabled then the allotment is not available online.


ECL Finance NCD November 2019 – Should You Invest?

There is no doubt that the investment involves lots of risks. Investing in NCD draws the investors’ attention equally.

Here we are with some of the reasons that make it is easy for the investors to decide whether or not to invest in the Edelweiss NCD November 2019.

Top Reasons of Why One Should Invest in Edelweiss NCD:

  1. Winning Interest Rates: The Edelweiss NCD offers attractive interest rates of up to 10.40% that offers great profit on the capital invested.
  2. Do Not Require to Open Edelweiss Broking Account: For investing in the Edelweiss NCD there is no specific need of opening an Edelweiss broking account, in fact, the investor only needs a Demat account to invest.
  3. Good Earning: Since the Edelweiss NCD offers a good interest rate, investors can make good money by investing their money for 24 months to 5 years tenure.
  4. Secured NCD: Edelweiss offers secured NCD thus even in the case of non-performance of the company or closure of the firm, NCD investors will be prioritized for the repayment of the capital as well as the interest earned over the tenure.

*Here it is essential to know that NCD investors would only be preferred for the repayment. There is no guarantee that the investors will get the complete amount back.

Why Not Invest in Edelweiss NCD 2019?

Here are some of the points that direct the investors towards the main reasons of why one should think twice before investing in NCD.

  1. Suspicious Harm to the Company’s Business: The non-performance of assets could suspiciously affect the company’s business.
  2. A Decrease in Profit: The unpredictive interest rates can affect the gross amount thus decreasing the value of overall profit over the tenure.
  3. Can Harm Future Finance Performance: The inability of the company to maintain relationships with their clients or any default or non-repayment or credit losses of any one of the client or group of the client can affect the business of the company as well as the future financial performances.
  4. Change in Governing Bodies’ Guidelines Can Harm Business: The company is accountable and supervised by the RBI and other government authorities. Any change in the RBI guidelines and its regulation can have an adverse effect on the overall business. Also, any adverse action taken by the RBI might have a material effect on the business and its financial conditions.
  5. Inefficiency of the Company to Obtain Permit: The inefficiency of the company to obtain, renew or manage the regulatory permits and approval have adverse effects on the business that can harm the finances as well.
  6. Company’s Inability to Recover the Full Value of Collateral or Amount: The company may fail to recover the full value of the monetary deposit and amount that can affect the financial condition of the business adversely.

Conclusion

Edelweiss NCD is secured in nature with the offering of high-interest rates. But investing in it, especially for the long term can be riskier.

Since Edelweiss offers the NCD session for 24 months, 39 months and 60 months as well, the investors can choose this short tenure for investing in Edelweiss NCD.

It is good to avoid 10 years, as it is quite difficult to predict the company’s status in such a long run. If one is willing to invest for a longer period then it is always good to invest in the top mutual funds in which there are more chances of high-returns.

If in case, you are looking to invest in this NCD, let us assist you in taking the next steps ahead.

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