Edelweiss Financial Services Limited has announced the opening of the public issue of secured redeemable non-convertible debts (NCDs), cumulatively aggregating up to ₹ 2,000 million. The face value is ₹ 1,000 each for an amount up to ₹ 1,000 million base issue size, with a green shoe option of up to ₹ 1,000 million.
“A greenshoe option is a provision in an initial public offering (IPO) underwriting agreement that grants the underwriter the right to sell more shares than originally planned if the demand for a security issue proves higher than expected,” as per Investopedia.
There are twelve 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. The effective annual yield for NCDs ranges from 9 per cent p.a. to 10.46 per cent p.a. The issue is scheduled to open on April 8, 2024, and close on April 23, 2024.
At least 75 per cent of the funds raised through this issue will be used for the purpose of repayment or prepayment of interest and principal on existing company borrowings.
The balance amount would be utilised for general corporate purposes, subject to such utilisation not exceeding 25 percent 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 NCDs proposed to be issued under the issue have been rated “CRISIL A+/Stable, as per a company statement. Trust Investment Advisors Private Limited and Nuvama Wealth Management Limited are the lead managers for the issue. The NCDs will be listed on BSE Limited to provide liquidity to the investors.
