Edelweiss Financial Services on October 4, 2023 announced the public issue of secured redeemable non-convertible debentures (NCDs) of face value of Rs. 1,000 each for a base issue of Rs. 100 crore. The issue also comes with a green shoe option of up to Rs. 100 crore, thus cumulatively aggregating up to an issue limit of Rs. 200 crore.
There are 10 series of NCDs carrying fixed coupons with tenures of 24, 36, 60 and 120 months with annual, monthly and cumulative interest payout options. The effective annual yield ranges from 8.94 per cent per annum to 10.46 per cent per annum, Edelweiss Financial Services announced in a press statement.
The issue is scheduled to open on October 6, 2023 and will close on October 19, 2023. The NCDs will be listed on the Bombay Stock Exchange (BSE) and traded only in the dematerialised form. They have been rated “Crisil AA- (AA negative).
Edelweiss Financial Services said that the allotment will be made on the basis of date of upload of each application into the electronic book of the BSE. However, on the date of oversubscription and thereafter, the allotments shall be made to the applicants on a proportionate basis.
According to Edelweiss Financial Services, 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 is proposed to 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 (Issue And Listing of Non-Convertible Securities) Regulations, 2021.
Edelweiss Financial Services further said that the additional incentive will be maximum of 0.20 per cent per annum 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, Nido Home Finance (formerly known as Edelweiss Housing Finance), and Edelweiss Retail Finance as the case may be, 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.