Edelweiss Financial Services Limited (EFSL) launched a public issue of Secured Redeemable Non-Convertible Debentures (NCDs) with a total value of ₹2,000 million. The offering includes a base issue size of ₹1,000 million, with the option to extend to an additional ₹1,000 million under a green shoe option.
The NCDs will be issued in 12 series, each featuring fixed coupons and varying tenures of 24, 36, 60, and 120 months. These NCDs offer investors an effective annual yield ranging from 9.50% to 11.00%. The public issue will open on July 8, 2024, and will remain available for subscription until July 22, 2024.
Edelweiss plans to allocate at least 75% of the funds raised from this issue to the repayment or prepayment of existing borrowings, both in terms of interest and principal amounts. The remaining funds will be utilized for general corporate purposes, adhering to the guidelines set forth by the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021, as amended.
The NCDs proposed under this issue have been rated “CRISIL A+/ Watch Negative,” indicating a moderate degree of safety regarding timely servicing of financial obligations, albeit with negative implications. This rating reflects the company’s current standing and the potential risks involved.
The NCDs will be available for trading in dematerialized form only, ensuring seamless and secure transactions for investors. Allotment will be conducted in consultation with BSE Limited, the designated stock exchange for this issue. Initially, allotments will be based on the date the application is uploaded into BSE Limited’s electronic book. However, in the event of oversubscription, allotments will be made on a proportionate basis.
Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited are the lead managers for this issue. Notably, Nuvama Wealth Management Limited, deemed an associate of the issuer, will be involved solely in marketing the issue in compliance with SEBI regulations.
Edelweiss Financial Services Limited’s latest offering reflects its strategic move to strengthen its financial position while providing investors with attractive yield opportunities through secured NCDs. By listing the NCDs on BSE Limited, EFSL aims to ensure liquidity and offer a reliable investment avenue to its stakeholders. This public issue marks a significant step in EFSL’s efforts to bolster its financial framework and support its growth objectives amidst a dynamic market environment.
