Edelweiss Financial Services Limited NCD

Edelweiss Financial Services Limited NCD

NCD Detail

Edelweiss Financial Services Limited, a Mumbai-based investment banking firm and merchant banker, has announced the launch of a public issue of Secured Redeemable Non-Convertible Debentures (NCDs) worth Rs 200 crore, with an option to retain over-subscription of up to Rs 200 crore, for a total of Rs 400 crore. This Tranche II Issue will be available for subscription from April 6, 2023, to April 21, 2023. Edelweiss has been a publicly-traded company since 2007 and has a wide network of approximately 300 offices across 126 cities in India and three international locations, with around 8,500 employees. Through its subsidiaries, the company is also involved in various businesses such as credit, wealth management, asset management, asset reconstruction, and insurance, including life and general insurance.

About Company

Edelweiss Financial Services Ltd. (EFSL) began operations as an investment banking firm in 1995 under Edelweiss Capital Limited. Over the years, the company has diversified its business operations to include credit, asset management, asset reconstruction, and insurance, among others, through its subsidiaries. The company’s research-driven and client-centric approach enables it to develop strong relationships with corporate, institutional, high-net-worth, and retail clients. EFSL has a Pan-India and international network, with around 238 domestic and three international offices, employing approximately 5,969 employees (excluding Edelweiss Wealth Management offices and employees) as of December 31, 2022. The company comprises 28 subsidiaries and 11 associate companies. EFSL has launched its 7th debt issue, following its last issue in January 2023. Edelweiss Wealth Management and Edelweiss Gallagher Insurance Brokers Limited ceased to be subsidiaries on March 26, 2021, and October 18, 2021, respectively.

Issue Details

Edelweiss Financial Services Ltd. (EFSL) is set to launch its 7th Secured-Redeemable-Non-Convertible Debenture (NCD) issue, totaling Rs 400 crores, including a green shoe option of retaining oversubscription of up to Rs 200 crores. The shelf limit for the debt issue is Rs 1000 crores. The NCDs will have a face value of Rs 1000, and the minimum application amount is set at 10 NCDs (Rs 10,000), with multiples of 1 NCD (Rs. 1000) after that. The subscription for the issue will open on April 6, 2023, and close on or before April 21, 2023. EFSL is offering coupon rates between 8.95% and 10.45%, with tenures of 24, 36, 60, and 120 months. Investors can receive interest on a monthly, annual, or cumulative basis. The company is likely to incur expenses of approximately Rs 9.00 crores for the entire issue process. At least 75% of the net proceeds from the issue will be used for the repayment/prepayment of existing borrowings, while up to 25% will be utilised for general corporate fund needs. The allotment will be done on a “First come – First served” basis, with 10% reserved for QIBs, 10% for corporates, 40% for HNIs, and 40% for retail investors. Equirus Capital Pvt. Ltd. will manage the issue, KFin Technologies Ltd. will be the registrar, and Beacon Trusteeship Ltd. will be the debenture trustee. The NCDs will be listed only on BSE post allotment.

Financial Performance

Important Dates

NCD Rating

The upcoming NCD issue from Edelweiss Financial Services Ltd. has been rated “Acuite AA-/Negative” by Acuite Ratings & Research Ltd. and “CRISIL AA-/Negative” by CRISIL Ltd. These ratings indicate a high degree of safety regarding the timely payment of financial obligations and suggest that the instruments carry very low credit risk. However, it is important to note that the assigning rating agencies may revise or withdraw their ratings at any time, and each rating should be assessed independently.

Company Promoters

The promoters of the company are Rashesh Shah, Venkatchalam Ramaswamy, Vidya Shah, and Aparna T.C.

The Objective of the Issue

The funds raised from the upcoming NCD issue by Edelweiss Financial Services Ltd. will be utilised primarily for two objectives. The first objective is to repay/prepay the interest and principal of existing borrowings, and the second is to serve general corporate purposes. The company aims to use at least 75% of the net proceeds from the issue for the repayment/prepayment of existing borrowings, while the remaining 25% will be utilised for general corporate fund needs. This strategic allocation of the funds will help the company to manage its existing debt obligations efficiently and to support its overall corporate objectives.

How to Apply

Wait for the NCD to open for subscription, then click on this link to apply for the Edelweiss Financial Services Limited NCD with Bigul https://ncd.bonanzaonline.com/.

How to Check Allotment Status

The registrar forEdelweiss Financial Services Limited NCD is KFin Technologies Limited. To check your allotment status, please click on this link https://karisma.kfintech.com/

FAQs

1. When is the Edelweiss Financial NCD Tranche II April 2023 public issue scheduled to be launched?

The Edelweiss Financial NCD Tranche II April 2023 issue will open for subscription on April 6, 2023, and close on April 21, 2023. Please note that the issue may close early if it is fully subscribed (base + shelf) before its closing date. The allotment will be done on a First Come, First Serve basis.

2. What is the Edelweiss Financial NCD Tranche II April 2023 issue timetable?

The opening date for the Edelweiss Financial NCD Tranche II April 2023 issue is April 6, 2023, and the closing date is April 21, 2023.

3. What is the base issue size of the Edelweiss Financial NCD Tranche II April 2023 issue?

The base issue size for the Edelweiss Financial NCD Tranche II April 2023 is Rs. 200 crore, and the shelf issue size is Rs 400 crore. The shelf issue is an option to retain oversubscription up to the shelf issue size over and above the base issue.

4. Which stock exchange is the Edelweiss Financial Services Limited NCD proposed to be listed on?

The NCDs are proposed to be listed on the BSE.

5. Are NRIs eligible to apply for the Edelweiss Financial Services Limited NCD IPO?

No, NRIs are not eligible to apply for this issue.

6. Name a list of people not eligible to invest in the Edelweiss Financial Services Limited issue.

• Minors without a guardian name
• Foreign nationals
• A person resident outside India
• Foreign portfolio investors
• Foreign venture capital investors
• Qualified foreign investors
• Overseas corporate bodies
• Persons ineligible to contract under applicable statutory/regulatory requirements are not eligible to invest in this issue.