Edelweiss Financial Services to raise up to Rs 200 crore via NCDs

At least 75% of the funds raised will be used for the purpose of repayment/prepayment of interest and principal of existing borrowings of the company

Edelweiss Financial Services Ltd announced a public issue of secured redeemable non-convertible debentures (NCDs) to raise up to Rs 200 crore on Wednesday. NCDs with a face value of Rs 1,000 each will be issued, worth Rs 100 crore, with a green shoe option of up to Rs 100 crore, the company said in a regulatory filing.

The issue will open on 6 October and close on 19 October.

"There are ten series of NCDs carrying fixed coupons and having tenures of 24 months, 36 months, 60 months, and 120 months with annual, monthly, and cumulative interest options," the company said. The effective annual yield for NCDs will range from 8.94 per cent per annum to 10.46 per cent per annum.

 

An additional incentive of up to 0.20 per cent per annum will be applicable to all categories.

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At least 75 per cent of the funds raised will be used for the purpose of repayment 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.

The company stated that the NCDs to be issued have been rated AA-/Negative by Crisil ratings.

Trust Investment Advisors Private Ltd and Nuvama Wealth Management Limited are the lead managers of the NCD issue. "The NCDs will be listed on BSE Limited to provide liquidity to the investors," the company noted.

Earlier in March, the board of the company approved raising up to Rs 1,500 crore through NCDs to fund business growth. In addition, the board also declared an interim dividend of Rs 0.25 per share on the equity share of the face value of Rs 1 each for the financial year ending 31 March 2023.

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On Wednesday, at 12:45 p.m., the shares of Edelweiss Financial Services Ltd were trading 5.14 per cent higher at Rs 66.25 apiece.