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Edelweiss Financial Services announces ₹2,00,000 crores public issue of NCD's

Oct 4, 2023

By: BlinkX Research Team

Edelweiss Financial Services Limited ("EFSL") has unveiled plans for a public issue of Secured Redeemable Non-Convertible Debentures (NCDs) with an aggregate value of up to ₹2,00,000 crores. This substantial offering includes a Base Issue Size of ₹1,00,000 crores and a green shoe option of an additional ₹1,00,000 crores.

The NCDs, each having a face value of ₹1000, will be available in ten series, featuring fixed coupons and tenures ranging from 24 to 120 months, with annual, monthly, and cumulative interest options. Investors can expect an effective annual yield ranging from 8.94% to 10.46%.

The issue is set to open on October 6, 2023, and will conclude on October 19, 2023. The funds raised through this issue will serve multiple purposes. At least 75% of the proceeds will be allocated for the repayment or prepayment of interest and principal on existing borrowings, with the remainder designated for general corporate purposes, ensuring compliance with SEBI NCS Regulations.

Investors who are also holders of previously issued debentures or bonds from the Company, ECL Finance Limited, Nido Home Finance Limited (formerly known as Edelweiss Housing Finance Limited), or Edelweiss Retail Finance Limited, as well as equity shareholders of the Company, will be eligible for an additional incentive of up to 0.20% per annum in the proposed issue.

The NCDs under this issue have been assigned a rating of "CRISIL AA-/Negative" by CRISIL, providing investors with an assurance of security. Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited are the Lead Managers for this NCD Issue, which will be listed on BSE Limited, enhancing liquidity for investors.