Edelweiss Financial Services Limited (EFSL) has launched a public issue of Secured Redeemable Non-Convertible Debentures (NCDs) worth ₹2,000 million, with an effective annual yield of up to 11%. The NCD issue, offers investors seeking fixed-income securities with a tenure of 24, 36, 60, and 120 months an opportunity to invest in 12 series of NCDs with various interest payment options, including annual, monthly, and cumulative plans, to cater to different investor preferences.
The Non-Convertible Ddebentures are priced at ₹1,000 each, and the issue comprises a base size of ₹1,000 million, with an option to retain an additional ₹1,000 million through a green shoe option. The fixed coupon rates range from 9.50% to 11.00% per annum, depending on the series and tenure chosen. Additionally, the NCDs offer staggered redemption options in Series IX and XII, providing further flexibility to investors.
The primary objective of this issue is to raise funds to repay or prepay existing borrowings and interest obligations, which will account for at least 75% of the funds raised. The remaining amount, capped at 25%, will be allocated for general corporate purposes, per SEBI’s non-convertible securities regulations.
The Non-Convertible Ddebentures have been assigned a rating of “CRISIL A+/ Watch Negative,” indicating an adequate degree of safety in terms of timely servicing of financial obligations, but the rating also highlights potential negative implications. The company’s credit risk is considered low, though investors are advised to consider the watch on the rating.
Edelweiss Fincnacial Services has appointed Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited, and Tipsons Consultancy Services Private Limited as the lead managers for the issue. These NCDs will be listed on the BSE Limited to provide liquidity to investors, allowing them to trade the securities in the secondary market.
This NCD offering from Edelweiss presents an attractive opportunity for investors seeking higher fixed returns while balancing risk, particularly in the context of the company’s credit rating and market position.
