On January 9, 2024, Edelweiss Financial Services (referred to as “EFSL” or the “Company”) unveiled its public offering of secured redeemable non-convertible debentures (NCDs). The NCDs, having a face value of ₹1,000 each, are issued for an amount of up to ₹1,250 million as the base issue size. Additionally, there is a green shoe option allowing for an additional ₹1,250 million, resulting in a cumulative issue limit of up to ₹2,500 million.
There are 10 sets of NCDs featuring fixed coupons and varying tenures of 24 months, 36 months, 60 months, and 120 months, offering annual, monthly, and cumulative interest options. The effective annual yield for these NCDs falls within the range of 8.94 per cent to 10.46 per cent per annum. The offering commenced on January 09, 2024, and is scheduled to conclude on January 22, 2024.
A minimum of 75 per cent of the funds generated from this offering will be allocated for the repayment/prepayment of the company’s existing borrowings, covering both interest and principal. The remaining portion is intended for general corporate purposes, with the condition that its utilization does not surpass 25 per cent of the total amount raised in the Issue. This adherence to the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021, as amended from time to time, is by the guidelines outlined in the “SEBI NCS Regulations”.
A maximum additional incentive of 0.20% per annum will be extended to all categories of investors participating in the proposed Issue, provided they are existing holders of debentures/bonds previously issued by the company, and/or ECL Finance Limited, Nido Home Finance (formerly known as Edelweiss Housing Finance), Edelweiss Retail Finance, or equity shareholders of the company, as applicable, on the preceding working Friday before the deemed date of allotment.
The NCDs intended for issuance under this offering have received ratings of “CRISIL A+/Stable (pronounced as CRISIL A plus rating with a stable outlook)” and “ICRA A+/rating watch with negative implications”.
Trust Investment Advisors and Nuvama Wealth Management have been appointed as the lead managers for this NCD Issue. The NCDs will be listed on BSE, facilitating liquidity for investors.
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Published: 09 Jan 2024, 05:14 PM IST