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Latest NCD IPO December 2021 in India - A holistic view

Kartik

Kartik

Dec 09, 2021

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Latest NCD IPO December 2021 in India - A holistic view

IT’S RAINING IPO’S!!!

Given the sentiments amongst investors, one can expect more companies to join the IPO crusade.

It’s raining IPOs, with three issues hitting the market in a span of four days, the pace of new filings points to a deluge during the last month of the year. So far this year, fifteen companies have filed their draft red herring prospectus (DRHP) with the market regulator for Debt initial public offerings (IPOs).

“India has made significant strides in macroeconomic stability, and its government is more motivated than ever to encourage corporate-investment-driven growth," says Chief India Economist Upasana Chachra. India is demystifying to see a VIBRANT and LIQUID Bond Market in the coming few years. And the BOND MARKET is here to stay!

But the IPO is wholesome!

You might want to sit down for this one. Too good if you already are. The eternal adage of eating healthy food and getting enough sleep just got added with another point: Don’t miss the wholesome investments opportunities. Edelweiss Financial Services Ltd, IIFL Home Finance Ltd, Indiabulls Housing Finance Ltd is all set to open the gates again for investors for IPO bidding on the 6th, 8th, and 9th of December this year.

New IPO Issuances

Edelweiss Financial Services Ltd is one of India`s leading financial services conglomerates, offering a robust platform to a diversified client base across domestic and global geographies. Key Businesses include Credit (Retail, Corporate), Investment & Advisory (Wealth Management, Asset Management), Insurance (Life, General). Bid now

IIFL Home Finance Ltd IIFL is a subsidiary of IIFL Finance Limited. With a wide spread of more than 125 branches across India, it offers Affordable Home loans, Non-Metro Housing loans, Home Purchase, Home Renovation, Home Construction, and Plot Purchase. Bid now

Indiabulls Housing Finance Ltd is a mortgage lender headquartered in Gurugram, Haryana, India. It is India's second-largest housing finance company and is regulated by the National Housing Bank. It is part of Indiabulls group and contributes approximately 80% of the group's turnover. Bid now

Edelweiss Financial Services Limited IIFL Home Finance Limited Indiabulls Housing Finance Limited
Rating AA- (CRISIL) AA(CRISIL) AA(CRISIL)
Industry Financial Services Housing Housing
Issue Size Rs 500 Crore Rs 1000 Crore Rs 1000 Crore
Coupon Rate (up to) 9.70% 8.75% 9.25%
Tenure (up to) 120 months 84 months 60 months
Security Secured Secured Secured
Minimum Investment Rs 10,000 Rs 10,000 Rs 10,000
AUM Rs 32.84 Lakh Crore Rs 44,249 Crore Rs 86,566 Crore
NPA NA 1.10% 1.59%
PAT Rs. 2539 Crore Rs 401 Crore Rs 1202 Crore.
latest-ncd-ipo-december-2021-in-india-a-holistic-view

Yield Comparison

Tenure 24 Months 36 Months 60 Months 84 Months 120 Months
Edelweiss Financial Services Limited 8.75% 9.10% 9.55% NA 9.70%
IIFL Home Finance Limited NA 8.25% 8.50% 8.75% NA
Indiabulls Housing Finance Limited 8.75% 9.00% 9.25% NA NA
latest-ncd-ipo-december-2021-in-india-a-holistic-view

Which IPO should you invest in: The Risk Reward?

Keeping all factors status quo, we believe it would be a smart decision to invest in the Indiabulls Housing Finance IPO as compared to IIFL Home Finance as Indiabulls Housing Finance provides a higher coupon interest rate while having the same credit rating and belonging to the same industry.

If you are looking for an investment with a higher return with a slightly higher risk, we believe it would be a smart decision to invest in the Edelweiss Financial Services Limited as compared to IIFL Home Finance as Indiabulls Housing Finance provides a higher coupon interest rate while having the one notch lower rating.

The Secondary Bond Market

A secondary market is a platform wherein investors can freely buy or sell securities without the interference of the issuing companies. The defining characteristic of the secondary market is that investors trade among themselves i.e. securities are traded at prices determined by demand and supply.

Let’s have a look at indicative yields of the issuers and where one should invest in the IPO or could give a miss?
Edelweiss Financial Services Limited is trading at a yield of about 9.75%-10% today which is much higher than the rates provided by the IPO. Investors could thus give the IPO a miss and invest in secondary markets. On a similar note, Indiabulls Housing Finance Limited is trading at a yield of around 9.50% today which is slightly higher than the IPO rates.

Whereas, IIFL is trading at a yield of around 9% which is in the same range as the IPO rates. Investors could thus look at investing in the IPO.


Trading in the bond market hasn’t been easier?


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Why choose Bonds India?

Bonds India is an online platform for fixed-income securities such as IPOs, bonds, 54EC bonds, and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, expert advice, and keeping a close watch on the market sentiment. Bonds India brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with competitive price before anyone else. piramal ncd, piramal ncd review, piramal capital ncd, piramal capital ncd 2021, piramal capital and housing finance ncd, piramal capital and housing finance ipo

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Invest in just three simple steps:

Latest NCD IPO December 2021 in Indigit

Parting Note

IPO is a fish in the vast ocean of the Bond Market. The Bond market comprises a variety of products tailored to suit the requirement of different individuals. Besides investing in a Bond IPO, investors can also look at investing at AAA rated Securities, Government Securities, 54 EC Bonds, and etc.

Typically, as of date, you could purchase an AAA Rated bond (Safest Credit Rating) at a yield starting from 7.50%. Grab the deal before it’s too late. Log into for more details.

Disclaimer

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