Edelweiss Financial Services Limited (“EFSL”/ “Company”) has announced the opening of a public issue of Secured Redeemable Non-Convertible Debentures (“NCDs”) with a face value of ₹1,000 each for an amount up to ₹1,000 million (“Base Issue Size”), with a green shoe option of up to ₹1,000 million, totaling up to ₹2,000 million (“Issue”).
The NCDs, to be issued in dematerialized form only, offer an effective yield of up to 10.46% per annum*. The Issue comprises twelve series of NCDs with fixed coupons and tenures of 24 months, 36 months, 60 months, and 120 months, offering annual, monthly, and cumulative interest options.
The Issue is scheduled to open on April 08, 2024, and close on April 23, 2024**. Allotment will be made on the basis of the date of upload of the application into the electronic book of BSE Limited (the “Designated Stock Exchange”). In case of oversubscription, allotment will be made on a proportionate basis***.
At least 75% of the funds raised through this Issue will be used for the purpose of repayment/prepayment of interest and principal of existing borrowings of the Company. The balance amount will be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount raised in the Issue, in compliance with the SEBI NCS Regulations.
The NCDs proposed to be issued under the Issue have been rated “CRISIL A+/Stable” by CRISIL Ratings Limited.
Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited# are the Lead Managers to the Issue. The NCDs will be listed on BSE Limited to provide liquidity to the investors.
#Nuvama Wealth Management Limited is deemed to be an associate of the Issuer, as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended. Nuvama Wealth Management Limited would be involved only in marketing of the Issue and shall not issue a due diligence certificate.
This announcement by Edelweiss Financial Services Limited signifies a strategic move to raise capital through NCDs, offering investors an attractive opportunity to invest in a secure and rewarding financial instrument.
