ECL Finance Limited NCD
ECL Finance Limited is one of the leading systemically important non-deposit taking NBFCs, focused on offering a broad suite of secured corporate loan products, retail loan products which are customized to suit the needs of the corporates, SMEs and individuals. Our corporate and retail loan products include:
(i) Structured Collateralised Credit: Our structured collateralised credit loans constituted 25.15% of our total loan book as at March 31, 2018. Structured collateralised credit loans are offered mostly to corporates against collateral such as liquid market securities, pledge of other securities, pledge of shares by promoters, immoveable property, etc. The loans include bridge financing or other short term loans to corporates. The funds raised are utilised for the working capital requirement of the corporates, expansion and diversification
of business among other uses. The tenure of the loans is generally up to two years.
(ii) Wholesale Mortgages: This includes various structured financing solutions for finance to developers for real estate projects under construction, which constituted 35.46 % of the Company’s total loan book as at March 31, 2018.
(iii) SMEs and others: This includes credit facilities and short term loans to SMEs for meeting their business requirements, which constituted 7.70 % of the Company’s total loan book as at March 31, 2018.
(iV) Loans against securities: This includes loans to investors against their existing portfolio of investments, which constituted 21.00 % of the Company’s total loan book as at March 31, 2018.
(V)Retail Mortgages – Loans against Property: This includes loans offered to self-employed individuals for business purposes against a mortgage of residential or commercial property, which constituted 6.67 % of the Company’s total loan book as March 31, 2018.
(Vi)Agri Credit: As a part of agricultural value chain services, we extend short term finance (usually for a period of three to nine months) against Agri commodities inventory stored in warehouses managed by the sister concerns of the Company, which constituted 4.02 % of the Company’s total loan book as at March 31, 2018.
Total income and profit after tax (PAT) of the Company for the financial year ended March 31, 2018 was Rs.30,600.27 million and Rs.4,620.47 million, respectively. The Company’s income from operations witnessed a CAGR of 39.32% from Rs.8,122.76 million in FY 2014 to Rs. 30,600.27 million in FY 2018 and PAT witnessed a CAGR of 30.35 % from Rs. 1,600.44 million in FY 2014 to Rs. 4,620.47 million in FY 2018. The loan book of the Company has witnessed a CAGR of 37.84% from Rs. 60,959.79 million in FY 2014 to Rs. 220,081.23 million in FY 2018.
Objective of NCD ECL Finance Limited NCD:
Objective of ECL Finance Limited NCD are:
1. For the purpose of onward lending and for repayment of interest and principal of existing loans
2. General Corporate Purposes
ECL Finance Limited NCD Details:
| Open Date: | Dec 13 2018 |
| Close Date: | Jan 06 2019 |
| Issue Type: | Fixed Price Issue NCD |
| Issue Size: | ₹ 1000 Cr. |
| Face Value: | ₹ 1000 Per NCD |
| Market Lot: | 1 NCD |
| Minimum Order Quantity: | 10 NCD |
Promoters:
Promoters of ECL Finance Limited NCD Company are:
Our Promoter is Edelweiss Financial Services Limited. Our Promoter was incorporated on November 21, 1995 as a public limited company under the provisions of the Companies Act, 1956 as Edelweiss Capital Limited
Financials:
| Particulars | For the year/period ended (in Rs. Lacs) | ||
| 31-Mar-2018 | 31-Mar-17 | 31-Mar-16 | |
| Total Assets | 34,923.97 | 26,677.45 | 25,779.29 |
| Total Revenue | 4,398.28 | 4,504.65 | 3,383.41 |
| Profit After Tax | 1,426.60 | 1,290.06 | 1,555.94 |
Credit Rating:
ECL Finance Limited NCD Company Ltd Ratings
(i) CRISIL: These NCD issues are graded with CRISIL AA/Stable for an amount of up to ₹ 20,000 Million dated June 13, 2018.
(ii) ICRA : These NCD issues are graded with ICRA AA/Stable for an amount of up to ₹ 20,000 Million dated June 14, 2018.
Conclusion: The rating of the NCDs by CRISIL and ICRA indicate that instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.
Post Tax returns:
(i) Sold after Maturity
The interest earned through NCDs will be added to the total income and will be taxed at 5%, 20%, and 30% respectively depending upon the income slab of an Individuals.
(ii) Sold Before Maturity
If you decide to sell the NCDs on the stock exchange, capital gains can also arise. If NCDs are sold with in a period of 12 months from the date of allotment, short term capital gains / loss (STCG) will arise and if you decide to sell NCDs after a period of 12 months, the resulting gain or loss is called long term capital gains / loss (LTCG).
Recommendation:
Review and Recommendation of ECL Finance Limited NCD by InvestorZone team => 6/10
1-5: Fair
5-7: Good
7-10: Excellent
Lead Manager of ECL Finance Limited NCD:
- Edelweiss Capital Limited
Registrar of ECL Finance Limited NCD:
- Link Intime India Private Limited
Discussion on ECL Finance Limited NCD:
18 Comments
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ECL Finance Limited NCD* – December 2018 will be *listing* on exchanges (BSE & NSE) *Tomorrow i.e. Tuesday, January 08, 2019.*
Please find below the link of listing circular of BSE.
https://www.bseindia.com/markets/MarketInfo/DispNewNoticesCirculars.aspx?page=20190107-32
How will we come to know if we it has been allotted to us?
The money will be debited from your account for the NCDs.
K, thanks
What is NCD? and how it differs from Stocks (shares)?? Which are the scenarios or candidates who can opt for ncd’s??
Thanks in advance.
NCDs are same like FDs of Bank. You will get fixed Interest rates. However, they are riskier than a bank because of which they offer higher interest rates than bank FDs.
One should understand the businesses of the company offering NCDs and their underlying portfolios first.
Secondly, rating is to consider as issues with high ratings offer a higher degree of safety.
Thirdly, one should consider the time horizon of the investment, and taxation (post-tax). The interest earned is to be added to one’s total income, and hence is entirely taxable as per one’s income tax slab.
Thanks Sir, much appreciated for the info.
I have one follow up question “You mentioned it is more risky than FD. what exactly the risks? Is the offering company will not give returns as per declaration based on some hidden conditions?”
Please read the scam of ILF&S on google.
Is this oversubscribed in retail ?
Can we subscribe now ?
Yes, it is oversubscribed in Retail. No point of applying in Retail Category now as it was First to Come First Serve to basis formula.
Thank you
How to buy this, can someone please guide
Hello Rajeev,
Download ecl ncd form from website ,sign on it ,submitt in your near by edelweiss branch.
You can contact your advisor or edelweiss call center.
If any query call me on
Maheshwari K
020-67087425
8309517955
Equity Advisor
Edelweiss broking limited.
wants to apply for NCD , any one wants to apply from north east ( Guwahati, Shillong )
Contact Mahesh yadav – 8876619589
Good ncd to cash in for risk savvy investors.
Thanks for sharing
All NBFC are running their ncd cycle in jan one of ecl bond (listed before 5 yr)is getting matured so they came with new one.
*ECL Finance Limited NCD*
Opens on: *13-Dec-18*
Issue Size: *₹ 1000 Crores*
Ret: ₹ 300 Crs
HNI: ₹ 300 Crs
Corp: ₹ 200 Crs
QIB: ₹ 200 Crs
*Instrument: Secured NCD*
Rating: *AA/Stable* by CRISIL & ICRA
Coupon:
*10.20% p.a. for 39 Months*
*10.40% p.a. for 5 Years*
*10.60% p.a. for 10 Years*
Interest Option: *Monthly & Annually & Cumulative*
Allotment first come first serve basis.