 "Edelweiss set to raise up to Rs 800 cr via public issue of bonds")
ECL Finance, promoted by Edelweiss Financial Services, is set to raise up to Rs 800 crore through a public issue of secured redeemable non-convertible debentures (NCDs). The primary issue size is Rs 400 crore, with an option to expand it by another Rs 400 crore. The bonds have a tenure of three and five years and the coupon rate is between 10 and 10.6 per cent.
The bonds come with monthly, annual and cumulative interest payment options. The effective yield on the bonds work out to be between 10.45 and 10.64 per cent. The face value and issue price per NCD is Rs 1,000.
The issue opens on Thursday and the bonds have been rated ‘AA’ by CARE Ratings and ICRA. Axis Capital and Edelweiss Financial Services are the lead managers.
The NCDs will be listed on the BSE and National Stock Exchange within 12 working days of issue closing date. The minimum application size of the NCDs is Rs 10,000.
ECL Finance is a leading systemically-important non-deposit taking non-banking financial company focused on offering a broad suite of secured corporate loan products, retail loan products that are customised to suit the needs of the corporates, SMEs and individuals.
According to the draft red-herring prospectus, the total income and profit after tax of the company for the year ending March 31, 2014 and for the six months ended September 30, 2014 stood at Rs 812 crore and Rs 160 crore; and Rs 528 crore and Rs 82.8 crore, respectively.
The company’s total income and profit after tax witnessed a compounded annual growth rate (CAGR) of 42.5 per cent, and 19.6 per cent, respectively, over the past four financial years from FY11 to FY14. The loan book of the company has witnessed a CAGR of 43.18 per cent over the past four financial years.
The bonds come with monthly, annual and cumulative interest payment options. The effective yield on the bonds work out to be between 10.45 and 10.64 per cent. The face value and issue price per NCD is Rs 1,000.
The issue opens on Thursday and the bonds have been rated ‘AA’ by CARE Ratings and ICRA. Axis Capital and Edelweiss Financial Services are the lead managers.
The NCDs will be listed on the BSE and National Stock Exchange within 12 working days of issue closing date. The minimum application size of the NCDs is Rs 10,000.
ECL Finance is a leading systemically-important non-deposit taking non-banking financial company focused on offering a broad suite of secured corporate loan products, retail loan products that are customised to suit the needs of the corporates, SMEs and individuals.
According to the draft red-herring prospectus, the total income and profit after tax of the company for the year ending March 31, 2014 and for the six months ended September 30, 2014 stood at Rs 812 crore and Rs 160 crore; and Rs 528 crore and Rs 82.8 crore, respectively.
The company’s total income and profit after tax witnessed a compounded annual growth rate (CAGR) of 42.5 per cent, and 19.6 per cent, respectively, over the past four financial years from FY11 to FY14. The loan book of the company has witnessed a CAGR of 43.18 per cent over the past four financial years.