ECL Finance NCD November 2019, Scheme Details, Coupon Rate…

ECL Finance NCD November 2019, Scheme Details, Coupon Rate...

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
 Listing  BSE

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.

Coupon Rates

 Options  Category  Tenures in Months  Interest Payment  Coupon Rate Individuals  Effective Yield  Maturity Value
 I  Secured  24 Months  Annual  9.90%  9.89%  1,000
 II  Cumulative  NA  9.90%  1,208
 III  39 Months  Annual  10.20%  10.22%  1,000
 IV  Cumulative  NA  10.20%  1,371
 V  60 Months  Monthly  9.95%  10.41%  1,000
 VI  Annual  10.40%  10.39%  1,000
 VII  Cumulative  NA  10.40%  1,641
 VIII  120 Months  Monthly  9.95%  10.41%  1,000
 IX  Annual  10.40%  10.39%  1,000

Credit Ratings:

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.

0 Reviews

Write a Review

Read Previous

Stocks to Focus: Petronet LNG, HDFC Life, Concor, BEML, NTPC, PVR, Telcos

Read Next

Intraday Trading Ideas for Afternoon Session on October 30, 2019

One Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Translate »