Edelweiss Financial Services Limited announces Rs. 2,500 million Public Issue of Secured Redeemable NCDs


Mumbai : Edelweiss Financial Services Limited on Friday announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs. 1,000 each for an amount up to Rs. 1,250 million ,with a green shoe option of up to Rs.  1,250 million, cumulatively aggregating up to Rs.  2,500 million.

There are ten series of NCDs carrying fixed coupons and having a 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 January 09, 2024 and close on January 22, 2024.

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 a 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), Edelweiss Retail Finance Limited, 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 A+/Stable (pronounced as CRISIL A plus rating with Stable outlook) and ICRA A+/rating watch with negative implications”.

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.

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