Edelweiss Financial Services announces ₹ 4,000 million Public Issue of Secured Redeemable NCDs

Edelweiss Financial Services Limited (EFSL), today announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of ₹1,000 each, amounting to ₹ 2,000 million ("Base Issue"), with an option to retain over-subscription up to ₹ 2,000 million aggregating to a total of ₹ 4,000 million ("Issue").

There are eight series of NCDs carrying fixed coupon and having tenure of 36 months, 60 months and 120 months with annual, monthly and cumulative interest option. Effective annual yield for NCDs ranges from 9.09% to 9.70%.

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 and the balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount raised in the Issue, in compliance with the Securities and Exchange Board of India (Issue And Listing Of Debt Securities) Regulations, 2008 as amended ("SEBI Debt Regulations").

An additional incentive maximum of 0.20% p.a. will be offered for all Category of Investors in the proposed Issue, who are also holders of NCD(s)/Bond(s) previously issued by Edelweiss Financial Services Limited, and / or its group companies, ECL Finance Limited, Edelweiss Housing Finance Limited, Edelweiss Retail Finance Limited and Edelweiss Finance & Investments Limited as the case may be, and/or are equity shareholder(s) of Edelweiss Financial Services Limited ("EFSL") as the case may be, on the deemed date of allotment.

The NCDs proposed to be issued under the Issue have been rated "Acuite AA (read as ACUITE double A) (Outlook: Negative)" for an amount of ₹ 4,000 million by Acuite Ratings and Research Limited vide their rating letter dated July 19, 2021 and revalidated by way of letter dated August 9, 2021, and "[ICRA]A+ (Negative)" for an amount of ₹ 4,000 million by ICRA Limited vide their rating letter dated July 22, 2021.

Equirus Capital Private Limited is the Lead Manager of this NCD issue. The Issue opens on August 17, 2021 and closes on September 6, 2021 with an option of early closure. The NCDs will be listed on BSE Limited to provide liquidity to the investors.

Shares of Edelweiss Financial Services Ltd. was last trading in BSE at Rs. 80.75 as compared to the previous close of Rs. 81.8. The total number of shares traded during the day was 468800 in over 5056 trades.

The stock hit an intraday high of Rs. 84 and intraday low of 77.7. The net turnover during the day was Rs. 37459026.

Source : Equity Bulls

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