26-Oct-2023
2 mins read
NCD Details
On October 4, 2023, Edelweiss Financial Services unveiled its plan to launch a public issue of secured, redeemable, non-convertible debentures (NCDs) with a face value of Rs 1,000 each. The base amount for this issue is Rs 100 crore, complemented by an additional green shoe option, bringing the potential issue to Rs 200 crore.
The NCDs are divided into 10 different series, each carrying fixed interest rates. They will have varying durations of 24, 36, 60, and 120 months. Depending on the series, investors can choose from different interest payout options like yearly, monthly, or at maturity. The annual yield for these NCDs is anticipated to be between 8.94% and 10.46%, as shared by Edelweiss in their recent communication.
Investors can participate in this offering starting October 6, 2023, which will remain open until October 19, 2023. Once issued, these NCDs will be available for trading on the Bombay Stock Exchange (BSE) in a dematerialized format. These debentures have received a “Crisil AA- (AA negative)” rating.
Edelweiss clarified that the allocation of the NCDs will primarily be based on the order of applications received. In cases of oversubscription, they will proportionally allocate the debentures to the applicants.
The firm outlined that the majority of the proceeds, at least 75%, will be channelled towards settling existing debts, both principal and interest. The remaining amount, which will not surpass 25% of the total funds gathered, is earmarked for varied business activities. This allocation aligns with the guidelines set by the Securities and Exchange Board of India in 2021.
Furthermore, Edelweiss announced an added bonus of up to 0.20% annually for certain investors in this issue. This applies to those who have previously invested in the company’s debentures/bonds or are current shareholders, provided they fulfil certain conditions specified by the company.
About Edelweiss Financial Services Limited
Established in 1995 as Edelweiss Capital Limited, Edelweiss Financial Services Ltd. (EFSL) initially operated as an investment banking firm. Over the ensuing decades, the Mumbai-based company expanded its range of services, diversifying into areas like credit, asset management, asset reconstruction, and insurance, among others, via its numerous subsidiaries. Edelweiss has always emphasized a research-driven, client-focused approach, fostering deep ties with a diverse client base spanning corporate, institutional, high-net-worth, and retail sectors.
As of June 30, 2023, the Edelweiss Group encompasses 28 subsidiaries and has made a notable imprint both domestically and globally. Their vast network includes 242 offices in India and 3 international locations. By that same date, the company employed a workforce of over 6,062 professionals. Moreover, it’s worth noting that the company had a total of 28 subsidiaries and 11 associate companies as of December 31, 2022.
The organization successfully transitioned to the public domain in 2007, with its shares being traded on major stock exchanges under the symbols NSE: EDELWEISS and BSE: 532922. By 2023, EFSL had launched its 7th debt issue, succeeding its previous one from January of that year.
However, certain changes occurred within the conglomerate’s structure: Edelweiss Wealth Management and Edelweiss Gallagher Insurance Brokers Limited ceased their roles as subsidiaries on March 26, 2021, and October 18, 2021, respectively.
Financial Performance of Edelweiss Financial Services Limited
| Period Ended | 31-Mar-23 | 31-Mar-22 |
| Assets | 44,064.27 | 43,279.78 |
| Revenue | 8,632.59 | 7,212.59 |
| Profit After Tax | 405.56 | 212.07 |
| Net Worth | 5,000.22 | 4,125.99 |
| Reserves and Surplus | ||
| Total Borrowing | 2,588.65 | 2,788.65 |
Important Dates for Edelweiss Financial Services Limited NCD
| Issue Open | October 6, 2023 – October 19, 2023 |
| Security Name | Edelweiss Financial Services Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 100 Crores |
| Issue Size (Shelf) | Rs 200 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | CRISIL AA-/Negative by CRISIL. |
| Tenor | 24, 36, 60 and 120 Months |
| Series | Series I to X |
| Payment Frequency | Monthly and Annually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Beacon Trusteeship Limited |
NCD Allocation Ratio of Edelweiss Financial Services Limited NCD
| Category | NCD’s Allocated |
| Institutional | 10% |
| Non-Institutional | 10% |
| HNI | 40% |
| Retail | 40% |
Edelweiss Financial Services Limited NCD Coupon Rates
| # | Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 |
| Frequency of Interest Payment | Annual | NA | Monthly | Annual | NA | Monthly | Annual | NA | Monthly | Annual |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor (In Months) | 24 | 24 | 36 | 36 | 36 | 60 | 60 | 60 | 120 | 120 |
| Coupon (% per Annum) | 8.95 | NA | 9.2 | 9.6 | NA | 9.67 | 10.1 | NA | 10 | 10.45 |
| Effective Yield (% per Annum) | 8.94 | 8.95 | 9.59 | 9.59 | 9.6 | 10.1 | 10.09 | 10.1 | 10.46 | 10.44 |
| Amount on Maturity (In Rs) | 1000 | 1187.3 | 1000 | 1000 | 1317 | 1000 | 1000 | 1618.7 | 1000 | 1000 |
NCD Rating of Edelweiss Financial Services Limited NCD
The NCDs proposed to be issued under this Issue have been rated CRISIL AA- /Negative (pronounced as CRISIL double A minus rating with a Negative outlook).
Company Promoters of Edelweiss Financial Services Limited
The promoters of the company are Rashesh Shah, Venkatchalam Ramaswamy, Vidya Shah, and Aparna TC.
The Objective of the Edelweiss Financial Services Limited NCD
The company plans to direct the net proceeds from the offering to repay or prepay the interest and principal of its current borrowings. Additionally, the funds will also be allocated for general corporate activities.
Edelweiss Financial Services NCD Lead Manager(s)
The lead managers of the NCD are Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited.
How to Apply for Edelweiss Financial Services Limited NCD
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 of Edelweiss Financial Services Limited NCD
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
- What is Edelweiss Financial Services Limited NCD?
The NCD (Non-Convertible Debentures) is a debt instrument offered by Edelweiss Financial Services Limited to the public for subscription. It is a secured, redeemable debenture that carries a fixed interest rate.
- What is the primary objective of this NCD issue?
The main goal of this offering is to use the net proceeds for repaying or prepaying the company’s existing interest and principal borrowings. A portion will also be utilized for general corporate activities.
- What is the issue size and price of the NCD?
The base issue size is Rs 100 crore, with a green shoe option potentially taking the total to Rs 200 crore. Each NCD is priced at Rs 1,000.
- How long is the NCD open for subscription?
The NCD subscription starts on October 6, 2023, and closes on October 19, 2023.
- How has the NCD been rated?
The NCD has received a CRISIL AA- /Negative rating.
- Who are the promoters behind the company?
The company is promoted by Rashesh Shah, Venkatchalam Ramaswamy, Vidya Shah, and Aparna TC.
- Where will the NCD be listed for trading?
Post-issue, the NCDs will be available for trading on the Bombay Stock Exchange (BSE) in a dematerialized format.
- Who are the lead managers for this NCD issue?
The NCD is being led by Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited.
- How can I apply for the Edelweiss Financial Services Limited NCD?
Once the NCD opens for subscription, you can apply through this link: Edelweiss Financial Services Limited NCD with Bigul.
- How do I check my allotment status?
The registrar for this NCD is KFin Technologies Limited. You can check your allotment status by visiting this link.
- Are there any special incentives for existing investors or shareholders?
Yes, there’s an added bonus of up to 0.20% annually for certain investors in this issue who meet specific criteria laid out by the company.
- How many series of NCDs are available, and what are their respective tenures?
There are 10 series of NCDs available with varying tenures of 24, 36, 60, and 120 months.
- Who is overseeing the allotment process?
The allocation of NCDs is being overseen by Beacon Trusteeship Limited.
- What are the payout options for these NCDs?
Investors have the flexibility to choose between annual, monthly, or cumulative interest payout options, depending on the series.
- What happens in the case of oversubscription?
In situations of oversubscription, Edelweiss will allocate the debentures to applicants on a proportional basis.