Edelweiss Financial Services Launches ₹2,000 Million NCD Public Issue

Edelweiss Financial Services Limited (“EFSL”/ “Company”), today announced 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 (“Base Issue Size”), with a green shoe option of up to ₹ 1,000 million, cumulatively aggregating up to ₹ 2,000 million ("Issue Limit”) (“Issue”).

 

The Issue has 12 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 with an option of staggered redemption in Series IX and XII. Effective annual interest yield on the NCDs ranges from 9.50% p.a. to 11.00% p.a.

 

The Issue is scheduled to open on October 7, 2024, and close on October 18, 2024**

 

At least 75% of the funds raised through the Issue will be used for the purpose of repayment/prepayment of interest and principal of existing borrowings of the Company and the balance amount would 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 NCDs proposed to be issued under the Issue have been rated “CRISIL A+/ Watch Negative (placed on ‘Rating Watch with Negative Implications’) by CRISIL Ratings Limited. Securities with these ratings are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such securities carry low credit risk”.

Trust Investment Advisors Private Limited, Nuvama Wealth Management Limited# and Tipsons Consultancy Services Private 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 (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 the SEBI NCS Regulations and shall not issue a due diligence certificate.