Edelweiss Financial Services Announces ₹2,000 Million NCD Public Issue

On October 7, 2024, Edelweiss Financial Services Limited announced the launch of its public issue of Secured Redeemable Non-Convertible Debentures (NCDs) with a face value of ₹1,000 each. The company aims to raise up to ₹1,000 million through the Base Issue Size, with a green shoe option allowing for an additional ₹1,000 million, cumulatively totalling ₹2,000 million.

The NCDs are structured in 12 series, offering fixed coupon rates and varying tenures of 24 months, 36 months, 60 months, and 120 months. Investors can choose from various interest options, including annual, monthly, and cumulative payments, with staggered redemption available for Series IX and XII. The effective annual interest yield for these NCDs ranges from 9.50% to 11.00% per annum, appealing to a broad spectrum of investors seeking stable returns.

The issue is set to open on October 7, 2024, and will remain available for subscription until October 18, 2024. Edelweiss plans to utilize at least 75% of the funds raised for repaying or prepaying existing borrowings, while the remaining funds will be allocated for general corporate purposes, in accordance with the Securities and Exchange Board of India (SEBI) regulations.

The proposed NCDs have received a rating of “CRISIL A+/ Watch Negative” from CRISIL Ratings Limited, indicating an adequate degree of safety for timely servicing of financial obligations, although the rating is currently under negative watch. This suggests a low credit risk for potential investors.

Lead managers for the issue include Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited, and Tipsons Consultancy Services Private Limited. The NCDs are expected to be listed on BSE Limited, ensuring liquidity for investors looking to trade their securities post-issuance.

On October 7, 2024, the share price of Edelweiss Financial Services Ltd opened at ₹124.00, touching the day’s low at ₹114.43, as of 11:27 AM on the NSE.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.