Edelweiss Financial Services Introduces Rs 2,000 Mn Public Issue

Edelweiss Financial Services (EFSL) has disclosed the launch of a public issue of Secured Redeemable Non-Convertible Debentures (NCDs), aiming to raise up to Rs 2,000 million. The issue comprises a base size of Rs 1,000 million, with a green shoe option allowing the total to reach Rs 2,000 million. The NCDs, with a face value of Rs 1,000 each, offer an effective yield of up to 11 per cent per annum.

The issue includes 12 series of NCDs with fixed coupon rates and tenures ranging from 24 to 120 months, offering options for annual, monthly, and cumulative interest payments. The debentures will be issued on a proportionate basis in the event of oversubscription, and will be traded in dematerialized form on the Bombay Stock Exchange (BSE).

At least 75 per cent of the funds raised will be allocated toward the repayment or prepayment of interest and principal on existing company borrowings, while the remaining 25 per cent will be used for general corporate purposes, adhering to SEBI regulations.

The NCDs have been rated “CRISIL A+/ Watch Negative” by CRISIL Ratings, indicating a moderate level of credit risk but with potential negative implications. The issue is open for subscription from 7 October 2024, until 18 October 2024. Lead managers include Trust Investment Advisors, Nuvama Wealth Management, and Tipsons Consultancy Services.