Edelweiss Financial Services Limited Announces ₹2,000 Million Public Issue of NCDs

On April 8, 2024, Edelweiss Financial Services Limited informed the stock exchanges about the opening of 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, which is the base issue size, with a green shoe option of up to ₹1,000 million, cumulatively aggregating up to ₹2,000 million (Issue).

The company announced that there are twelve series of Non-Convertible Debentures to carry fixed coupons and have a tenure of 120 months, 60 months, 36 months and 24 months with annual, monthly, and cumulative interest options. The effective annual yield for NCDs ranges from 9.00% per annum to 10.46% per annum. The issue is scheduled to open on April 08, 2024, and close on April 23, 2024.

Regarding the object of the issue, Edelweiss Financial Services Limited stated that a minimum of 75% of the funds raised through this issue would be used to repay or prepay the interest and principal of existing borrowings of the company. The remaining amount would be used for general corporate purposes, subject to such utilisation not more than 25% of the funds raised in the issue, in compliance with the Securities and Exchange Board of India (SEBI).

The Non-Convertible Debentures proposed to be issued under the Issue have been rated CRISIL A+/Stable. Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited are the lead managers of the issue. The Non-Convertible Debentures will be listed on BSE Limited to provide liquidity to the investors.

On April 8, 2024, Edelweiss Financial Services share price opened at ₹72.50, touching the day’s high at ₹72.70, as of 11:39 AM on the NSE.

About Edelweiss Financial Services Limited

Edelweiss Financial Services received a Category I Merchant Banker license from SEBI, effective October 16, 2000. After starting the business as an investment banking company, Edelweiss Financial Services, via its subsidiaries, has diversified its businesses to include credit, such as corporate credit, retail credit, asset management, which includes mutual fund and alternative asset management businesses, insurance, asset reconstruction and wealth management businesses.

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