Edelweiss Financial Services Limited said it is going to raise Rs 300 crore from investors by issuing secured redeemable Non-Convertible Debentures (NCDs), which include the base issue of Rs 150 crore and a greenshoe option (oversubscription option) of Rs 150 crore.
There are 10 series of NCDs carrying fixed coupons and having tenures 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 per annum to 10.46 percent per annum.
On top of that, the company will give an additional incentive of a maximum of 0.20 percent per annum to holders of NCDs and bonds previously issued by Edelweiss Financial Services, ECL Finance Limited, Edelweiss Retail Finance Limited, and Nido Home Finance Limited. Equity holders of the company will also receive this incentive.
For these investors, the effective maximum yield will be 10.66 percent. This compares with about 7 percent offered by ICICI Bank on 5-year fixed deposits.
The issue is scheduled to open on July 4 and close on July 17. The company said it reserves the option to close the issue earlier.
At least 75 percent of the funds raised through this issue will be used for the purpose of repayment and prepayment of interest and principal of existing borrowings of the company and the balance is proposed to be utilised for general corporate purposes, the company said in a release.
The NCDs have been rated 'CRISIL AA-/Negative' (pronounced as CRISIL double A minus rating with Negative outlook) by CRISIL Ratings Limited and 'ACUITE AA-/Negative' (pronounced as ACUITE double A minus) by Acuite Ratings & Research Limited.
Equirus Capital Private Limited is the Lead Manager of this NCD issue. The NCDs will be listed on the BSE.
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