• corporate

Edelweiss Financial Services Limited announces ₹ 2,500 million Public Issue of Secured Redeemable Non-Convertible Debentures (NCDs)

• nationalherald
• January 5, 2024

by Prashant Kapadia/NHN

• Effective Yield of up to 10.46 % per annum

• Credit Rating: CRISIL A+/Stable by CRISIL Ratings Limited and ICRA A+ (rating watch with negative implications)

• Trading in dematerialized form only

• Allotment, in consultation with BSE Limited (the “Designated Stock Exchange”), shall be made on the basis of the date of upload of each application into the electronic book of BSE Limited. However, on the date of oversubscription and thereafter, the allotments shall be made to the applicants on a proportionate basis

Mumbai, January 05, 2024: Edelweiss Financial Services Limited (“EFSL”/ “Company”), today announced the public issue of Secured Redeemable Non-Convertible Debentures (“NCDs”) of the face value of ₹ 1,000 each for an amount up to ₹ 1,250 million (“Base Issue Size”), with a green shoe option of up to ₹ 1,250 million, cumulatively aggregating up to ₹ 2,500 million (“Issue Limit”) (“Issue”).

There are ten 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. Effective annual yield for NCDs ranges from 8.94% p.a. to 10.46% p.a.

The Issue is scheduled to open on January 09, 2024 and close on January 22, 2024

At least 75% of the funds raised through this Issue will be used for the purpose of repayment/prepayment of interest and principal of existing borrowings of the Company and the balance is proposed to 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 additional incentive will be a maximum of 0.20% p.a. for all categories of Investors in the proposed Issue, who are also holders of debentures(s)/bond(s) previously issued by the Company, and/or ECL Finance Limited, Nido Home Finance Limited   (Formerly known as Edelweiss Housing Finance Limited), Edelweiss Retail Finance Limited, and/or are equity shareholder(s) of the Company as the case may be, on the preceding working Friday to the deemed date of allotment.

The NCDs proposed to be issued under the Issue have been rated “CRISIL A+/Stable (pronounced as CRISIL A plus rating with Stable outlook) and ICRA A+/rating watch with negative implications”.

Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited# are the Lead Managers of this NCD 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 SEBI NCS Regulations and shall not issue a due diligence certificate.

About Edelweiss Financial Services Limited: Edelweiss Financial Services Limited (“EFSL”), was incorporated on November 21, 1995 under the name Edelweiss Capital Limited and started operations as an investment banking firm after receipt of a Category II license from SEBI. Edelweiss Capital Limited subsequently received a Category I Merchant Banker license from SEBI with effect from October 16, 2000. The name of Edelweiss Capital Limited was changed to ‘Edelweiss Financial Services Limited’ with effect from August 1, 2011.

EFSL was listed in December 2007 under the symbols NSE: EDELWEISS, BSE: 532922, Reuters: EDEL.NS and EDEL.BO and Bloomberg: EDEL IS and EDEL IB. The Corporate Identity Number of EFSL is L99999MH1995PLC094641.

After commencing the business as an investment banking firm, EFSL through its subsidiaries has diversified its businesses to include credit including retail and corporate credit, asset management including mutual fund and alternatives asset management businesses, asset reconstruction, insurance both life and general insurance business, and wealth management businesses. Further, Nuvama Wealth Management Limited (formerly known as Edelweiss Securities Limited) (“NWML”) has ceased to be an Associate of the Issuer with effect from March 30, 2023. EFSL believes that their focus on product innovation and a seamless customer experience has helped expand their retail footprint to approximately ~6.3 million customers. Its research driven approach and consistent ability to capitalize on emerging market trends has further enabled it to foster strong relationships across client segments including corporates, institutions (both domestic and international), high networth individuals and retail clients. It has a pan-India and international network with 238 domestic offices, and 3 international offices (total 241 offices) and employed 6,176 employees as at September 30, 2023. The group comprises of 27 subsidiaries as at September 30, 2023.