Share price of Edelweiss Financial Services jumped 3 percent intraday on November 4 after ECL Finance, the NBFC arm of Edelweiss Group, announced a public issue of secured redeemable non-convertible debentures (NCDs) amounting to Rs 100 crore. The issue has a greenshoe option to retain up to Rs 400 crore, in case of oversubscription.
The public issue is of the face value of Rs 1,000 each, amounting to Rs 100 crore (base issue), with an option to retain over-subscription up to Rs 400 crore, adding to a Rs 500 crore(Tranche II Issue), the company said in a filing to the exchanges.
The NCDs offer an effective yield (cumulative) of 9.90 percent per annum for 24 months tenure, 10.20 percent per annum for 39 months, up to 10.40 percent per annum for 60 months and 10.41 percent for 120 months tenure (monthly option).
The funds raised through the Tranche II Issue will be used for onward lending and repayment of interest and principal of existing borrowings of the company and for general corporate purpose.
Holders of NCD(s)/bond(s) and/or are equity shareholder(s) of the promoter Edelweiss Financial Services Limited, as the case may be, shall be eligible for an additional incentive of 0.25 percent per annum.
"We continue focus on maintaining the quality of our loan book. While we have maintained a diversified business, we hope to further diversify our funding sources, with the public issue of NCDs," ECL Finance MD & CEO Deepak Mittal said.
The stock touched upper circuit of Rs 97.95 per share and has gained over 14 percent in the last three days.
At 1153 hours, Edelweiss Financial Services was quoting at Rs 95, up Rs 1.70, or 1.82 percent. It has touched an intraday high of Rs 97.95 and an intraday low of Rs 93.50.
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