Edelweiss Financial Services Limited on Wednesday announced the public issue of secured redeemable non-convertible debentures (NCDs) of the face value of Rs 1,000 each, amounting to Rs 2,000 million (base issue). The option is available to retain over-subscription of up to Rs 2,000 million aggregating to Rs 4,000 million with the issue, Edelweiss Financial Services said.
There are 10 series of NCDs carrying fixed coupons and having tenure of 24 months, 36 months, 60 months and 120 months with annual, monthly and cumulative interest options. Effective annual yield for NCDs ranges from 8.94 percent to 10.46 percent. The Tranche II Issue is scheduled to open on April 6, 2023 and close on April 21, 2023.
At least 75 percent 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 utilised for general corporate purposes, subject to such utilization not exceeding 25 percent of the amount raised in the issue, in compliance with the Securities and Exchange Board of India (Sebi), the firm said.
"The additional incentive will be maximum of 0.20 percent for all category of investors in the proposed Tranche II Issue, who are also holders of NCD(s)/bond(s) previously issued by the company, and/or ECL Finance Limited, Nuvama Wealth & Investment Limited, Edelweiss Housing Finance Limited, Edelweiss Retail Finance Limited and Nuvama Wealth Finance Limited as the case may be, and/or are equity shareholder(s) of the company, as the case may be, on the deemed date of allotment," Edelweiss Financial Services Limited said in a regulatory filing.
The NCDs proposed to be issued under this Tranche II Issue have been rated “CRISIL AA-/Negative (pronounced as CRISIL double A minus rating with Negative outlook)” by CRISIL and “ACUITE AA-/ Negative (pronounced as ACUITE double A minus)” by Acuite.
Equirus Capital Private Limited is the lead manager of this NCD issue.
The NCDs will be listed on BSE Limited to provide liquidity to the investors.
(Edited by : Anshul)
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