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HomeBusinessFinanceEdelweiss Financial Services announces ₹4,000 million public issue of NCDs

Edelweiss Financial Services announces ₹4,000 million public issue of NCDs


Edelweiss Financial Services has announced the public issue of secured redeemable non-convertible debentures (NCDs) of the face value of 1,000 each, amounting to 4,000 million (tranche II issue) comprising a base issue of Rs.2,000 million along with an option to retain over-subscription up to 2,000 million. At least 75% of the funds raised will be used for repayment /prepayment of the company’s borrowings, and the rest will be used for general corporate purposes.

Edelweiss Financial Services, which commenced business as an investment banking firm, has over the years diversified into businesses such as retail and corporate credit, asset management, asset reconstruction, insurance and wealth management, which are carried on via its subsidiaries.

There are ten series of NCDs with tenures of 24 months, 36 months, 60 months and 120 months with annual, monthly and cumulative interest options. As per the company press release, the effective annual yield for these NCDs ranges from 8.84% to 10.09% per annum. An additional incentive of 0.20% per annum will be offered to all investors in the proposed issue who are also holders of NCDs or bonds previously issued by Edelweiss Financial Services, and/ or ECL Finance, Edelweiss Broking, Edelweiss Housing Finance, Edelweiss Retail Finance and Nuvama Wealth Finance (formerly known as Edelweiss Finance & Investments), and/or are equity shareholders of Edelweiss Financial Services on the deemed date of allotment.

The NCDs (tranche II issue) have been rated CRISIL AA-/Negative and ACUITE AA-/Negative, with the ‘negative’ referring to negative outlook. The Tranche II issue will be open from October 3 to 17 with an option of early closure. The NCDs will be listed on the Bombay Stock Exchange to provide liquidity to investors.

According to the press release, allotment will be based on first -come- first-serve basis, based on the date of upload of each application into the electronic system of the stock exchange. However, on the date of oversubscription and thereafter, the allotment to the applicants will be made on proportionate basis.

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