ECL Non-Convertible Debenture Scheme Updates
ECL Finance Limited is the leading systemically important non-deposit taking NBFCs. It is promoted by the Edelweiss group. As of the latest updates, ECL is coming up with a new Tranche II non-convertible debenture scheme. The scheme opens for subscription on 4th November 2019. ECL Finance NCD November 2019 offers secured NCDs along with high yield as 10.41% per year. Moreover, the coupon rates of this scheme attract the maximum of investors to invest in this scheme.
Basic Details of ECL Finance NCD November 2019
|Scheme Name||ECL Finance NCD|
|Scheme Period||Nov 4, 2019 – Nov 22, 2019|
|Coupon Rate||10.41% per year|
|Minimum Application Size||10 NCDs (Rs 10, 000) and in multiples of 1 NCD thereafter|
|Face Value||Rs 1000 per NCD|
ECL Finance plans to raise about Rs 100 crore with an option to retain another Rs 400 crore. The offer is open for subscription on 4th November and will close on 22nd November 2019. ECL NCD scheme is available in 9 different options. It offers cumulative and non-cumulative interest payment options. It offers NCD for 2 years, 39 months, 5 years, and 10 Years. NCD will list on BSE. Hence these NCDs are liquid investments.
Interested investors should invest for a minimum of 10 NCDs which means invest a minimum of Rs 10,000 and in multiples of 1 NCD bond thereafter. The face value of the scheme available at Rs 1000 per NCD.
The scheme is available for all type of investors expect for NRI’s. Non-resident Indians cannot invest in this scheme.
|Options||Category||Tenures in Months||Interest Payment||Coupon Rate Individuals||Effective Yield||Maturity Value|
CRISIL and CARE rating agents have rated the NCD as Crisil AA-/Stable and CARE AA-: Stable.
The scheme is 20% reserved for qualified institutional buyers and 20% for corporate. The remaining 60 percent is available for retail investors and High net worth individuals.
ECL NCD attracts the investors with its high yields. One can get up to 10.14% yield per year. Moreover, the issuing NCDs are secured NCDs and safe to invest compared to other unsecured NCDs. But, the credit agents negotiate downgraded ratings to this scheme. According to the source, a decline in the company’s capital adequacy ratio could restrict its future business growth. So, investors can refer to all risk factors in the prospectus of the company.
Disclaimer: This post gives information regarding the scheme. It does not give any advice or recommendation. Please read the offer document carefully before investing.