The non-banking financial company ECL Finance is a part of Edelweiss Group. Incorporated in the year 2005, since then it has been offering a wide range of corporate and retail loan products. The main group Edelweiss is engaged in credit including retail finance, advisory & franchise business that include asset & wealth management, capital market, balance sheet management and insurance. Today, we are going to present ECL Finance Ltd NCD Review along with issue details, company background, DRHP.
About ECL Finance Ltd NCD Issue Details
- The issue opens on- Jul 24, 2018
- The issue close on- Aug 16, 2018
- Issue Type: Fixed Price Issue NCD
- Face value: Rs. 1000 Per NCD
- Issue size: 20,000,000 NCD’s of Rs. 1000
- Issue size: Rs. 2,000.00 Crore
- Issue price: Rs. 1000 Per NCD
- Market lot: 10 NCD
- Listing At: BSE, NSE
- Minimum order quantity: 10 NCD
- DRHP: Click here
Purpose of Issuing NCD
This is quite an important point. The objective of the company behind issuing NCD is so much important. These are as follows:
- Payment of interest and existing loans are one of the main purposes of issuing NCD.
- The general corporate purpose like the corporate image, the brand name may enhance by issuing NCD.
- Without raising share capital, if a company wants to raise its fund, issuing NCD is the available option.
- Non-convertible debenture holders get a higher interest rate than convertible debentures.
About ECL Finance Ltd
Based on the available data of March 31, 2018, we are able to jot down some of the important points on the Product Portfolio of the company. These are as follows:
- Wholesale Mortgages- This consists of 35.46% of the total loan book of ECL ltd.
- SMEs and others- Constitutes 7.70% of the total loan book.
- Structured Collateralised Credit- 25.15% of the total loan book.
- Retail Mortgages- 6.67% of the total loan book
- Agri Credit- 4.02% of the company’s total loan book.
- Loans against securities- 21.00% of the total loan book
- Non-Executive Director: Ms. Vidya Shah
- Managing Director: Mr. Rashesh Shah
- Executive Director: Mr. Himanshu Kaji
ECL Finance Ltd NCD Review:
I have mentioned that ECL is a part of the Edelweiss Group which is one of the leading company in India since 1997. On March 31, 2018, Edelweiss Group along with three subsidiaries held 100% of the paid-up share capital of the particular company. ECL finance ltd has 102 branches all across the country, headquartered in Mumbai. Total income of the company in FY 2018 is at 30,600.27million and PAT (Profit After Tax) is 4,620.47 million.
As it is clearly visible that the net profit is gradually increasing. Edelweiss is a large group and there is no doubt they will maintain the good track record. From DRHP or draft red herring prospectus, no such fundamental data is available. EPS, P/E ratio, RoNW, NAV/Share are some of the significant factors in the fundamental analysis of a company. Still, based on the main group ‘s track record, background history, it is advisable to invest in this NCD to maximize your profit. Therefore, ECL Finance Ltd NCD Review carries a POSITIVE view. It is recommended to invest in this NCD.