2 hrs ago
Edelweiss Launches ₹300 Crore NCD Issue Offering Up To 10%
Edelweiss Financial Services is asking investors to lend it money through special securities called NCDs.
The company hopes to raise as much as ₹300 crore.
Investors can receive interest every month, every year, or at the end of the investment period.
The investment periods range from two years to 10 years.
The offered annual yield is between 8.64% and 10%.
The NCDs have a CRISIL A+/Stable rating, which indicates adequate safety but still some credit risk.
Most of the money raised will be used to repay or pay off the company’s existing loans.
The NCDs are planned to be listed on BSE so they may be traded later.
Edelweiss Financial Services has opened a public issue of secured redeemable NCDs worth up to ₹300 crore.
The issue has a ₹150 crore base size and a ₹150 crore greenshoe option, with each NCD valued at ₹1,000.
Investors can choose among 10 series with maturities ranging from 24 months to 120 months.
The effective annual yield ranges from 8.64% to 10%, depending on the series and investor category.
At least 75% of the net proceeds will be used to repay or prepay existing borrowings.
- Who
- Edelweiss Financial Services Limited is issuing the NCDs to investors.
- What
- A public issue of secured redeemable non-convertible debentures is seeking to raise up to ₹300 crore.
- Where
- The NCDs are proposed to be listed on BSE Limited and will be held and traded only in dematerialised form.
- When
- The subscription period opened on September 21 and is scheduled to close on October 5, 2026, subject to possible early closure or extension.
- Why
- At least 75% of the net proceeds will be used to repay or prepay existing borrowings, with the remainder allocated to general corporate purposes.
Potential Benefits
Risk Considerations
Return potential
Potential Benefits
The issue offers effective annual yields of up to 10%, with monthly, annual and cumulative interest options.
Risk Considerations
The CRISIL A+/Stable rating indicates adequate safety but also acknowledges that the instruments carry some credit risk.
Investment flexibility
Potential Benefits
Investors can select from 10 series and maturities ranging from 24 months to 120 months.
Risk Considerations
Longer tenures may keep investors committed for extended periods, and the articles do not guarantee that investors will be able to sell easily before maturity.
Secondary-market access
Potential Benefits
Proposed listing on BSE could provide an avenue for secondary-market liquidity.
Risk Considerations
The NCDs can be traded and held only in dematerialised form, and the articles do not specify the level of future market liquidity.
Key facts
- Issuer
- Edelweiss Financial Services Limited
- Maximum issue size
- ₹300 crore, comprising a ₹150 crore base issue and a ₹150 crore greenshoe option
- Face value
- ₹1,000 per NCD
- Tenures
- 24 months, 36 months, 60 months and 120 months
- Effective annual yield
- 8.64% to 10%, depending on the series and investor category
- Credit rating
- CRISIL A+/Stable from CRISIL Ratings Limited
- Use of proceeds
- At least 75% for repayment or prepayment of existing borrowings; up to 25% for general corporate purposes
Sources
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