Edelweiss Financial Services to raise Rs 2,500m via NCD public issue

Edelweiss Financial Services Limited (“EFSL”), a prominent player in India’s financial services sector, today announced the launch of a public issue of Secured Redeemable Non-Convertible Debentures (NCDs). The NCDs, each with a face value of ₹1,000, aim to raise an amount up to ₹1,250 million, with an additional option (green shoe option) to cumulatively aggregate up to ₹2,500 million. This initiative marks a significant move in the company’s financial strategy, offering a substantial investment opportunity to the market.

The NCD issue presents ten series of debentures with fixed coupons and varying tenures, including 24 months, 36 months, 60 months, and 120 months. These options come with annual, monthly, and cumulative interest payout choices, catering to a diverse range of investor preferences. The effective annual yield for these NCDs ranges from 8.94% p.a. to 10.46% p.a., offering competitive returns to investors.

Edelweiss Financial Services Expands its Portfolio with ₹2,500 Million NCD Issue

The issue, scheduled to open on January 09, 2024, and close on January 22, 2024, is a strategic move by Edelweiss Financial Services to strengthen its financial position and expand its funding base. At least 75% of the funds raised through this issue will be allocated for the repayment and prepayment of the company’s existing borrowings, with the balance proposed for general corporate purposes. This allocation aligns with the Securities and Exchange Board of India (SEBI) Non-Convertible Securities Regulations.

Furthermore, Edelweiss Financial Services is offering an additional incentive of up to 0.20% p.a. for certain categories of investors, enhancing the appeal of the NCD issue. The NCDs proposed under this issue have been rated “CRISIL A+/Stable” and “ICRA A+/rating watch with negative implications”, indicating a stable outlook and reliable investment grade.

The NCDs will be listed on BSE Limited, ensuring liquidity for investors. Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited are the lead managers of this NCD issue. This move by Edelweiss Financial Services Limited reflects its commitment to diversifying its funding sources and adhering to robust financial practices in the dynamic Indian financial market.