Mumbai, October 4, 2023 – Edelweiss Financial Services Ltd has made a strategic move by unveiling a public offering of secured redeemable non-convertible debentures (NCDs), aiming to secure up to Rs 200 crore in funds. The financial institution revealed its plans through a regulatory filing on Wednesday.
The NCDs, each with a face value of Rs 1,000, are set to be issued, totaling Rs 100 crore, with an option to increase the offering size by an additional Rs 100 crore through a green shoe option.
Investors and interested parties can participate in this offering, which is scheduled to open on October 6 and close on October 19.
Diverse NCD Series Offering Flexibility
Edelweiss Financial Services is providing investors with a range of options, offering ten series of NCDs, each carrying fixed coupons with tenures of 24 months, 36 months, 60 months, and 120 months. These NCDs will feature annual, monthly, and cumulative interest options, catering to various investment preferences.
The effective annual yield on these NCDs will vary from 8.94 percent per annum to 10.46 percent per annum, making them an attractive choice for investors seeking competitive returns.
Moreover, an additional incentive of up to 0.20 percent per annum will apply across all categories, adding further appeal to potential investors.
Utilization of Funds
Edelweiss Financial Services intends to allocate at least 75 percent of the raised capital towards the repayment or prepayment of interest and principal on existing company borrowings. The remaining 25 percent of funds will be allocated for general corporate purposes, ensuring prudent financial management.
Credit Rating and Listing
Crisil ratings have assigned an AA-/Negative rating to the NCDs that will be issued, reflecting their stability and reliability.
To provide liquidity to investors, the NCDs will be listed on the BSE Limited, enhancing accessibility and trading opportunities.
Continued Growth Strategy
This strategic move follows Edelweiss Financial Services’ board’s earlier approval in March to raise up to Rs 1,500 crore through NCDs to fuel business expansion. Additionally, the board declared an interim dividend of Rs 0.25 per share for the financial year ending March 31, 2023.
As of Wednesday, at 03:30 p.m., Edelweiss Financial Services Ltd’s shares were trading at Rs 66.20 apiece, marking a 5.08 percent increase.
About Edelweiss Financial Services:
Edelweiss stands as a prominent financial services conglomerate in India, providing a robust platform to serve a diverse clientele spanning both domestic and international markets. Our unwavering commitment revolves around comprehending the unique needs of our customers and delivering tailored financial solutions.
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