Edelweiss Financial Services NCD opens for subscription from 03 January 2023. the company aims for a base issue size of ₹200 Crores.
Edelweiss Financial Services Ltd
Incorporated in 1995, Edelweiss Financial Services Limited started its operations as an investment banking firm after receipt of a Category II license from SEBI. Later, the company became a Category I Merchant Banker after receiving the license for the same from SEBI. Edelweiss Financial Services first listed its securities on the mainboard exchanges – BSE and NSE in December 2007.
Through the years, the company has diversified its operations widely. Its subsidiaries offer services like credit facilities including retail and corporate credit, asset management including mutual fund and alternatives asset management businesses, asset reconstruction, insurance for both life and general insurance business, and wealth management businesses.
Edelweiss Financial Services emphasize highly on product innovation, provides a seamless customer experience, and follows a research-driven approach, and these factors have expanded the company’s operations to about 5 million customers. Edelweiss Financial Services commenced operations as an investment banking firm but has diversified its businesses to include credit including retail and corporate credit, asset management, asset reconstruction, insurance, and wealth management businesses.
The company has a pan-India and international network with 237 domestic offices, and three international offices (a total of 240 offices) and employed 5,955 employees as of 30 September 2022. The group comprises 28 subsidiaries and 10 associate companies as of 30 September 2022. Its total income was INR 7,304.6 crore for FY 2022 and INR 3,393.3 crore for the six months ended 30 September 2022 on a consolidated basis. The company’s profit attributable to owners was INR 188.8 crore for the year ended 31 March 2022 and INR 93.6 crore for the six months ended 30 September 2022 on a consolidated basis.
Objectives of the Issue
- For the purpose of repayment /prepayment of interest and principal of existing borrowings of our Company – 75% of the amount raised and allotted in the Issue.
- General Corporate Purposes – 25% of the amount raised and allotted in the Issue.
Edelweiss Financial Services NCD January 2023 Details
| Issue Open | Jan 3, 2023 – Jan 23, 2023 |
| Security Name | Edelweiss Financial Services Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 200.00 Crores |
| Issue Size (Shelf) | Rs 1,000.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | CRISIL AA-/Negative by CRISIL Ratings Limited and ACUITE AA-/ Negative by Acuité Ratings & Research Limited |
| Tenor | 24, 36, 60 and 120 Months |
| Series | Series I to X |
| Payment Frequency | Annual, Cumulative, and Monthly |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustees | BEACON TRUSTEESHIP LIMITED |
Options and Coupon Rates
| Option | Tenure | Interest Payment | Coupon Rate | Effective Yield | Maturity Amount |
| Series 1 | 24 months | Annual | 9.00% | 8.99% | INR 1,000 |
| Series 2 | 24 months | Cumulative | NA | 9.00% | INR 1,188.40 |
| Series 3 | 36 months | Monthly | 9.20% | 9.59% | INR 1,000 |
| Series 4 | 36 months | Annual | 9.60% | 9.59% | INR 1,000 |
| Series 5 | 36 months | Cumulative | NA | 9.60% | INR 1,317.0 |
| Series 6 | 60 months | Monthly | 9.67% | 10.10% | INR 1,000 |
| Series 7 | 60 months | Annual | 10.10% | 10.09% | INR 1,000 |
| Series 8 | 60 months | Cumulative | NA | 10.10% | INR 1,618.30 |
| Series 9 | 120 months | Monthly | 10.00% | 10.46% | INR 1,000 |
| Series 10 | 120 months | Annual | 10.45% | 10.44% | INR 1,000 |
NCD Rating
The NCDs proposed to be issued under the Issue have been rated “CRISIL AA-/Negative (pronounced as CRISIL double A minus rating with Negative outlook)” for an amount of ₹ 10,000 million by CRISIL Ratings Limited and “ACUITE AA-/ Negative (pronounced as ACUITE double A minus)” for an amount of ₹ 10,000 million by Acuité Ratings & Research Limited.
Company Financials
| Period Ended | Total Assets | Total Revenue | Profit After Tax |
|---|---|---|---|
| 31-Mar-20 | 54277.54 | 9513.31 | -2043.77 |
| 31-Mar-21 | 46350.01 | 9346.35 | 253.92 |
| 31-Mar-22 | 43187.78 | 6911.4 | 212.07 |
NCD Allocation Ratio
NCD’s Offered by Category
| Category | NCD’s Reserved |
|---|---|
| Institutional | 200,000 |
| Non-Institutional | 200,000 |
| HNI | 800,000 |
| Retail | 800,000 |
| Total NCD’s | 2,000,000 |
Company Promoters
- Rashesh Shah
- Venkatchalam Ramaswamy
- Vidya Shah
- Aparna
NCD Lead Manager
- Equirus Capital Private Limited
Edelweiss Financial NCD Registrar
KFin Technologies Limited
KFintech, Tower-B, Plot No 31 & 32,
Financial District, Nanakramguda, Gachibowli,
Hyderabad, Telangana India – 500 032.
Phone: 04067162222, 04079611000
Email: efsl2.ncdipo@kfintech.com
Website: https://karisma.kfintech.com/
Company Contact Information
Edelweiss Financial Services Ltd
Edelweiss House, Off C.S.T. Road,
Kalina, Mumbai 400 098,
Maharashtra, India
Phone: +91 22 4009 4400
Email: efslncd@edelweissfin.com
Website: https://www.edelweissfin.com/
Final Thoughts
Non Convertible Debentures (NCD) are a better investment option for those who are looking for a diversified portfolio. investing in Edelweiss Financial NCD is purely your personal choice. make a good study and analysis before you make the investment.
Happy Investing
