Edelweiss Financial Services Ltd announces Public Issue of Secured Redeemable NCDs for an amount upto ₹2,000 million

Edelweiss Financial Services Limited ("EFSL"/ "Company"), announced the public issue of Secured Redeemable Non- Convertible Debentures ("NCDs") of the 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, cumulatively aggregating up to ₹ 2,000 million ("Issue Limit") ("Issue").

There are ten series of NCDs carrying fixed coupons and having tenure of 24 months, 36 months, 60 months and 120 months with annual, monthly and cumulative interest options. Effective annual yield for NCDs ranges from 8.94% p.a. to 10.46% p.a.

The Issue is scheduled to open on October 6, 2023 and close on October 19, 2023**

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 Non-Convertible Securities) Regulations, 2021, as amended from time to time ("SEBI NCS Regulations").

The additional incentive will be maximum of 0.20% p.a. for all categories of Investors in the proposed Issue, who are also holders of debentures(s)/bond(s) previously issued by the Company, and/ or ECL Finance Limited, Nido Home Finance Limited (Formerly known as Edelweiss Housing Finance Limited), and Edelweiss Retail Finance Limited as the case may be, and/or are equity shareholder(s) of the Company as the case may be, on the preceding working Friday to the deemed date of allotment.

The NCDs proposed to be issued under the Issue have been rated "CRISIL AA-/Negative (pronounced as CRISIL double A minus rating with Negative outlook)" for an amount of ₹ 10,000 million by CRISIL vide their rating letter dated September 1, 2023 with rating rationale dated August 31, 2023.

Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited# are the Lead Managers of this NCD 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 (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, Nuvama Wealth Management Limited would be involved only in marketing of the Issue and as per Regulation 25 (3) of SEBI NCS Regulations and shall not issue a due diligence certificate.

Shares of Edelweiss Financial Services Limited was last trading in BSE at Rs. 63.01 as compared to the previous close of Rs. 61.19. The total number of shares traded during the day was 1611653 in over 8102 trades.

The stock hit an intraday high of Rs. 63.43 and intraday low of 59.75. The net turnover during the day was Rs. 99949598.00.

Source : Equity Bulls

Keywords

EdelweissFinancialServices INE532F01054 PublicIssue NCDs