Edelweiss Financial Services Announces Public Issued Of Secured Redeemable NCDs Worth Rs 200 Crore

Edelweiss Financial Services on April 8, 2024 announced the opening of the public issue of secured redeemable non-convertible debentures (NCDs) with a base issue size of Rs 100 crore with a green shoe option of another Rs 100 crore, cumulatively aggregating up to Rs 200 crore.

Issue Details

The issue opened on April 8, 2024, and will close on April 23, 2024. The NCDs come with a face value of Rs. 1,000 each. The minimum application size is Rs. 10,000 and in multiples of Rs. 1,000 thereafter. The NCDs have been rated CRISIL A+/Stable.

Edelweiss Financial Services said in a press statement that are 12 series of NCDs carrying fixed coupons with tenures of 24 months, 36 months, 60 months, and 120 months with annual, monthly, and cumulative interest options. The effective annual yield for NCDs ranges from 9 per cent per annum to 10.46 per cent per annum.

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Listing, Trading And Subscription

The issue will be listed on the BSE within six working days of the date of issue closure. Trading will be in the dematerialised form only. The allotment will be made in consultation with BSE on the basis of the date of upload of the application into the electronic book of BSE.

According to the Edelweiss Financial Services’ prospectus, the minimum subscription has been kept at 75 per cent of the base issue, i.e., Rs 75 crore. In case of an oversubscription, the allotment shall be made to the applicants on a first-cum-first serve basis, and thereafter on a proportionate basis, it said.

Objectives

Edelweiss Financial Services added in a statement that at least 75 per cent of the funds raised through this issue will be used for the purpose of repayment and/or prepayment of interest and principal of existing borrowings of the company. The balance will be utilised for general corporate purposes, subject to such utilisation not exceeding 25 per cent of the amount raised in the Issue, in compliance with the Securities and Exchange Board of India (Sebi) (Issue And Listing of Non-Convertible Securities) Regulations, 2021, as amended from time to time.