Nido Home Finance NCD IPO

Rating

The rating of an issuer company reflects its past growth and performance. The rating increases when the company consistently performs well and decreases when it is not performing well.

Categories

Low risk:

AAA, AA+, AA, AA-, A+, A, A-

Moderate risk

BBB+, BBB, BBB-, BB+, BB

High risk

BB-, B+, B, B-, C, D

The rating agency for this Bond is Crisil Ratings Limited.

About

Nido Home Finance Limited is a non-deposit-taking housing finance company (HFC) that offers secured loan products to individuals, with a focus on the affordable housing segment. Incorporated in 2008 and formerly known as Edelweiss Housing Finance Limited, the company operates under a certificate of registration issued by the Reserve Bank of India (RBI) under the National Housing Bank Act, 1987. The company provides a range of mortgage-related loan products, including home loans for purchase, construction, and renovation of residential properties, non-housing loans such as loans against property (including lease rental discounting), and construction finance for residential projects. As of FY25, Nido Home Finance operated 67 offices across 67 cities in India. Use of Proceeds The proceeds from the current issue of NCDs are proposed to be used for the following purposes: Onward lending, financing, and refinancing the existing indebtedness of the company (repayment/prepayment of the interest and the principal of borrowings), General corporate purposes;

Pros and Cons

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Nido Home Finance claims to benefit from being part of the Edelweiss group, a well-established financial services organisation in India. Despite the name change from Edelweiss Housing Finance Limited, the company continues to leverage the brand recognition and group synergies to support loan book expansion, new product launches, and cross-selling opportunities.

As of FY25, the company claims to have a distribution network of 67 offices across 67 cities in India. It further claims this presence helps support customer acquisition and scale in its retail housing finance business, which had a reported base of about 18,000 customers.

The company claims to have access to a diversified mix of funding sources, including nationalised and private sector banks, National Housing Bank (NHB) refinance, mutual funds, and non-convertible debentures. It also claims to have adopted an asset-light model through co-lending, securitisation, and direct assignment partnerships, with nearly two-thirds of its assets under management (AUM) processed through these channels.

As of FY25, Nido Home Finance reported a capital-to-risk-weighted assets ratio (CRAR) of 33.60 percent, well above the prescribed minimum of 15 percent, providing it with a substantial buffer to support future growth and absorb potential credit shocks.

Nido Home Finance claims to have a diversified credit portfolio anchored in home loans, which are historically low-risk, while also offering products like loan against property (LAP) and construction finance. The company also claims to manage concentration risk by limiting exposure to any single credit product or borrower segment and maintains that its retail portfolio structure provides stability, with gross non-performing loans (NPLs) remaining at 2.17 percent and net NPLs at 1.77 percent as of FY25.

The company claims to have established robust internal controls and multi-layered risk management systems, including a centralised operations unit, an independent audit framework, and product-level credit approval protocols.

The company reported a consistent increase in revenue from operations. It increased from Rs 441.46 crore in FY25 to Rs 457.92 crore in FY24 and Rs 512.10 crore in FY23.

Nido Home Finance NCD

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