Edelweiss Financial Services Ltd has launched a public issue of secured non-convertible debentures (NCDs) worth ₹150 crore, and a green shoe option of up to ₹150 crore. This takes the total issue size to ₹300 crore.
Check dates here:
The NCD issue opened on June 8 and is scheduled to close on June 19,
However, company has reserved the right to close the issue earlier or extend the closing date, subject to regulatory approvals.
Here’s look at the key features:
- The Issue has 10 series of NCDs carrying fixed coupons and having a tenure of 24 months, 36 months, 60 months, and 120 months with annual, monthly and cumulative interest options, according to the regulatory filing.
- According to the company, the effective annual yield on the instruments ranges between 8.64% and 10%.
- The NCDs have a face value of ₹1,000 each and will be issued and traded only in dematerialised form.
- The allotment of NCDs will be made on the basis of the date of upload of applications into the electronic book of BSE.
- In case of oversubscription on any day, allotment will be made on a proportionate basis in consultation with the stock exchange.
The company said, “At least 75% of the funds raised through this Issue will be used for the purpose of repayment/prepayment of interest and principal of existing borrowings of the company and the balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount raised in the Issue, in compliance with the Sebi Regulations.”
How is it rated?
The proposed NCDs have been assigned a rating of “CRISIL A+/Stable” by CRISIL Ratings, indicating an adequate degree of safety regarding timely servicing of financial obligations.
The NCDs are proposed to be listed on the BSE to provide liquidity to investors. Trust Investment Advisors Pvt Ltd, Nuvama Wealth Management Ltd and Tipsons Consultancy Services Pvt Ltd are acting as lead managers to the issue.