Bond Public Issue Latest – Top Picks and Investment Insights April’-23

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Bond Public Issues have become increasingly popular among investors who seek regular interest payments from investing in fixed-income securities. With a minimum investment as low as Rs.10,000, they offer an attractive investment option for those looking to diversify their portfolio. The surprise pause in the rate hikes by the Reserve Bank of India in the latest monetary policy meeting makes this a great time to invest in non-convertible debentures (NCDs).

In the month of April, several companies have come up with new NCD public issues to raise funds for various business projects and these NCDs are offered to the public for investment. With hassle-free payment options available through UPI, the entire process of investing in Non-Convertible Debenture (NCD) public issues can hardly take up to 10 minutes. In this blog, we will explore some of the latest bond public issues which are live in March, and provide insights into the key terms and highlights of each issue.

Edelweiss Financial Services Limited

Issue Highlights

Issue-Highlights-Edelweiss-Financial-Services-Limited

Terms of the Issue

Terms-of-the-Issue-Edelweiss-Financial-Services-Limited

About the Company:

  • Edelweiss Financial Services Limited (EFSL) was founded in 1995. It is one of India’s leading financial services conglomerates offering right financial solutions for every stage.
  • Edelweiss Group is promoted by Mr. Rashesh Shah and Mr. Venkat Ramaswamy, who are seasoned professionals in the financial services industry with over two decades of experience.
  • The company, based in Mumbai, services its client base of over 2.1 million through a network of more than 300 offices and nearly 8,500 employees.
  • EFSL is a diversified company having presence in sectors like:
  • Retail as well as Corporate Credit
  • Asset Management & Resolution
  • Wealth Management and
  • Insurance businesses

Key Shareholders as on December 2022:

  1. Rashesh Shah- 15.44%
  2. Venkatchalam Ramaswamy- 6.16%
  3. BIH SA- 5.12%
  4. Mabella Trustee Services Private Limited- 4.11%

Other reputed shareholders include LIC, Vanguard Group, Rekha Jhunjhunwala, Barclays, Black Rock etc.

Financials for Quarter ended Dec 2022:

Financials-for-Quarter-ended-Dec-2022-Edelweiss-Financial-Services-Limited

Kosamattam Finance Limited

Issue Highlights

Issue-Highlights-Kosamattam-Finance-Limited Terms of the Issue

Terms-of-the-Issue-Kosamattam-Finance-Limited

About the Company

  • Kosamattam Finance Limited (KFL) is a systemically important non-deposit taking NBFC primarily engaged in the gold loan business, lending money against the pledge of household jewellery.
  • Headquartered in Kerala, KFL is a part of the “Kosamattam Group” led by Mathew K. Cherian. It operates through 980 branches spread in the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Delhi, Maharashtra, Gujarat and Telangana along with the Union Territory of Puducherry and has employed 3,663 employees.
  • In addition to the core business of gold loan, KFL is also engaged in fee based ancillary services which includes microfinance, money transfer services, foreign currency exchange, power generation, agriculture and air ticketing services.
  • As on December 31, 2022 the Promoter & Promoter Group holds 89.79% of the company.

Financial Parameters of the Company

Financial-Parameters-of-the-Company-Kosamattam-Finance-Limited

Muthoot Finance Limited

Issue Highlights

Issue-Highlights-Muthoot-Finance-Limited Terms of the Issue

Terms-of-the-Issue-Muthoot-Finance-Limited

About the Company

  • Muthoot Finance is an “Upper Layer NBFC” (NBFC-UL) headquartered in the south Indian state of Kerala having an operating history of over 83 years
  • Muthoot Finance provides personal loans and business loans secured by gold jewelry, or Gold Loans, primarily to individuals who possess gold jewelry but are not able to access formal credit to meet the short-term liquidity requirements.
  • Muthoot Finance is the largest gold financing company in India in terms of loan portfolio according to the CRISIL Research – Industry Report on Gold Loans in March 2023.
  • The Gold Loan portfolio of the company as on December 31, 2022 comprised approximately 8.11 million loan accounts in India that were serviced through 4,672 branches across 22 states, Delhi and six union territories in India.
  • There were 26,399 employees working for the company as on December 31, 2022.

Financial Parameters of the Company

Financial-Parameters-of-the-Company-Muthoot-Finance-Limited

Muthoot Fincorp Limited

 Issue Highlights

Issue-Highlights-Muthoot-Fincrop-Limited

Terms of the Issue

Terms-of-the-Issue-Muthoot-Fincrop-Limited

About the Company

  • Muthoot Fincorp Limited is a systemically important non-deposit taking NBFC that has been in business for over 25 years.
  • Muthoot Fincorp Limited is a part of the “Muthoot Pappachan Group” which has diversified business interests ranging from 69 hospitality, financial services, inflight catering, infrastructure for information technology, automobile sales and services and real estate.
  • Muthoot Fincorp Limited is one of the prominent gold loan players in the Indian Market and it operates in 3,627 branches located across 24 states, including union territory of Andaman & Nicobar Islands and Delhi.
  • As on December 31, 2022, the company’s gold loan portfolio comprised approximately 32.89 lakhs loan accounts.

Unaudited Standalone Data as on December 31, 2022:

Unaudited-Standalone-Data-as-on-December-31,-2022-Muthoot-Fincrop-Limited

 

 

 

 

 

Cholamandalam Investment and Finance company Limited

Issue Highlights

Terms of the Issue

About the Company

  • Cholamandalam Investment and Finance company Limited (Chola) is a non-banking finance company (NBFC), a part of “Murugappa Group”, that has been in operation for more than 122 years.
  • The company commenced business as an equipment financing company and have since expanded the operations to offer a diverse range of financial products such as (i) Vehicle Finance; (ii) Loan Against Property; (iii) Home Loans and (iv) New Businesses. As at December 31, 2022, the portfolio mix comprised of the following:

  • Chola also offers stock broking and a variety of other financial services to customers through Subsidiaries.
  • As of December 31, 2022, it operates through 1,166 branches across 29 States and Union Territories in India and has 22.70 lakhs active customers.
  • The CRAR of our Company as on December 31, 2022, was at 17.75% as against the regulatory requirement of 15%.

Top 3 holders of Non-convertible Debentures as on March 31, 2023:

  1. State Bank of India- 10.45%
  2. Aditya Birla Sun Life Mutual Fund- 4.52%
  3. Larsen and Toubro Limited – 4.21%

Financial Parameter of the Company (on standalone basis) (Rs. in crores)

 

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