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Edelweiss Financial Services is set to raise up to Rs 400 crore through public issue of non-convertible debentures (NCDs). The issue size is of Rs 200 crore with a greenshoe option of an additional Rs 200 crore.
The coupon rate of the bonds are about 12 per cent and the tenure is 70 months. The interest payment options available for investors are monthly, annually and cumulative. About 50 per cent of the issue is reserved for retail investors.
The issue will open on Tuesday. Axis Bank and Edelweiss are the lead managers to the issue. Edelweiss refused to comment regarding the details of the issue.
Last month, Srei Infrastructure Finance had tapped the retail NCD market with an issue size of Rs 75 crore with a greenshoe option of an equal quantum.
In the current financial year, so far Rs 542.36 crore has been raised through public issue of NCDs, shows data from the Securities and Exchange Board of India (Sebi). Besides Srei Infrastructure Finance, Shriram City Union Finance and Kosamattam Finance have tapped the market.
According to issue arrangers more companies will raise funds through this route in a bid to broaden the investors/lenders base.
