Edelweiss Financial Services Rs 4,000 million public NCD issue oversubscribed

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Edelweiss Financial Services Ltd (EFSL) announced on September 6 that its Rs 4,000 million-worth public issue of secured redeemable Non-Convertible Debentures (NCDs) has been oversubscribed.

The issue has been oversubscribed 1.74 times in the retail category, with with a total collection of Rs 2,791.06 million, it said.

The NCD issue, whose lead manager is Equirus Capital Private Ltd, opened on August 17 and closed on September 6. The NCDs will be listed on BSE Ltd to provide liquidity to the investors, the company said in a statement.

Over 17,000 applications were received from across India, EFSL said, adding that almost 50 percent of the total issue size got subscribed for 5-year and 10-year tenure, which indicates that the investors sought to subscribe for long term.

"The issue also saw good interest from its existing NCD investors, demonstrating continued trust and faith in the group," the company added.

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EFSL Chairman and Managing Director Rashesh Shah said the encouraging response to the NCD issue "shows the faith that investors across categories have in our diversified model and the appetite for high quality financial papers that offer competitive interest rates".

"The NCD issue has seen interest from investors across series and tenures offering annual, monthly, and cumulative interest options with the effective annual yield ranging from 9.09 to 9.70 percent," the statement added.

The NCDs have been rated “Acuite AA (read as ACUITE double A) (Outlook: Negative)” for an amount of Rs 4,000 million by Acuite Ratings and Research Limited and “[ICRA]A+ (Negative)” for an amount of Rs 4,000 million by ICRA Limited, EFSL said.