Edelweiss Financial Services Limited is one of India’s leading financial services conglomerates, offering a robust platform to a wide range of client bases across domestic & global geographies. The company’s single-minded focus & continuous is on understanding customers’ needs and offering the right financial solutions. Present in every financial life stage of a customer, helping them create & grow wealth, and protect everything, are the key lines of business of the company.
- Credit (Retail, Corporate)
- Asset Management
- Wealth Management
- Insurance (Life, General)
This diversified business model reflects Edelweiss Financial Services Limited’s experience across India’s multiple consuming facets, from large companies & industrial behemoths to small business as well as the average Indian urban & rural household. The company has an over 2.1 million strong client base which is serviced through a network of over 300 offices, with close to 8,500 employees. Together with a strong network of Authorized Persons & Sub-Brokers, the Group has a presence across all major cities in India.
Edelweiss Financial Services Limited is coming out with a debt offering of Secured Redeemable Non-Convertible Debentures with the face value of ₹ 1000 each, a Base Issue size of ₹ 200 Crore, and an option to retain oversubscription up to ₹ 200 Crore aggregating up to ₹ 400 crores, being the Tranche-I Issue size. The issue opens for subscription on Tuesday, 3rd January 2023, and will close on or before Monday, 23rd January 2023. The allotment is on a first come first serve basis with the minimum application to be made is of 10 NCDs.
Edelweiss Financial Services Ltd NCD Details
| Tranche I Issue opens: | Tuesday, 3rd January 2023 | ||||
| Tranche I Issue closes: | Monday, 23rd January 2023 | ||||
| Allotment: | First Come First Serve Basis | ||||
| Face Value: | Rs.1,000 per NCD | ||||
| Nature of Instrument: | Secured Redeemable Non-Convertible Debentures | ||||
| Minimum Application: | 10 NCDs (Rs.10, 000) & in multiple of 1NCD | ||||
| Listing: | BSE | ||||
| Credit Rating | “CRISIL AA-/Negative” (pronounced as CRISIL double A minus rating with Negative outlook) and “ACUITE AA-/ Negative” (pronounced as ACUITE double A Minus) | ||||
| Tranche-I Issue Size | ₹ 200 crores (“Base Issue Size”), with an option to retain oversubscription up to ₹ 200 crores aggregating up to ₹ 400 crores | ||||
| Minimum Subscription: | Minimum subscription is 75% of the Base Issue, i.e., ₹ 150 crores | ||||
| Registrar: | KFIN Technologies Limited | ||||
| Category | I – Institutional (“QIB”) | II – Non-Institutional (“Corporates”) | II – High Net worth
Individual (“HNI”) (Amount aggregating to above ₹ 10 lakh) |
II – Retail Individual (“Retail”) (Amount aggregating up to and including ₹ 10 lakh) | |
| Category Allocation of the overall Issue Size | 10% | 10% | 40% | 40% | |
| Bucket Size (₹) assuming Issue size of ₹ 400 Cr₹ | ₹ 40 Cr | ₹ 40 Cr | ₹ 160 Cr | ₹ 160 Cr | |
Edelweiss Financial Services Ltd NCD
Application form
Specific Terms of the Prospectus:
The terms of the NCDs offered pursuant to the Issue are as follows:
| Series | I | II | III | IV | V | VI | VII | VIII | IX | X |
| Frequency of Interest Payment | Annual | Cumulative | Monthly | Annual | Cumulative | Monthly | Annual | Cumulative | Monthly | Annual |
| Tenor | 24
months |
24
months |
36
months |
36 months | 36 months | 60 months | 60 months | 60 months | 120
months |
120
months |
| Coupon Rate (% p.a.) for NCD Holders in: | ||||||||||
| Category I, II, III & IV | 9.00% | NA | 9.20% | 9.60% | NA | 9.67% | 10.10% | NA | 10.00% | 10.45% |
| Effective Yield (% p.a.) for : | ||||||||||
| Category I, II, III & IV | 8.99% | 9.00% | 9.59% | 9.59% | 9.60% | 10.10% | 10.09% | 10.10% | 10.46% | 10.44% |
| Amount (₹ / NCD) on Maturity for ^ : | ||||||||||
| Category I, II, III & IV | ₹1,000 | ₹1,188.
40 |
₹ 1,000/- | ₹ 1,000/- | ₹1,317.
00 |
₹1,000 | ₹1,000 | ₹1,618. 30 | ₹1,000 | ₹1,000 |
| Maturity / Redemption Date (Years from the Deemed Date of Allotment) | 24
months |
24
months |
36
months |
36 months | 36 months | 60 months | 60 months | 60 months | 120
months |
120
months |
*The Company shall allocate and allot Series IV NCDs wherein the Applicants have not indicated the choice of the relevant NCD Series. The additional incentive will be maximum of 0.20% p.a. for all Category of Investors in the proposed Issue, who are also holders of NCD(s)/Bond(s) previously issued by the Company.
Edelweiss Financial Services Ltd NCD
Application form
Conclusion :
With nominal returns potentially going into double digits, this is an attractive proposition due to the current scenarios from a return perspective, which will provide a regular monthly income for up to 10 years. The allotment is on a first come first serve basis with an additional incentive of a maximum of 0.20% p.a. if the investor is also a holder of NCD(s)/Bond(s) previously issued or is an equity shareholder of Edelweiss Financial Services Limited, though the company is offering an attractive coupon rate one must also be taking into consideration of the CRISIL rating which for this NCD is CRISIL AA-. As the NCD is going to be listed on BSE one can always encash the amount invested as one desires, and due to the availability of the NCD in only Demat form, one must have a Demat account opened to apply.
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Disclaimer
For further details refer to section titled “Issue Related Information” on page 64 of the Tranche I Prospectus dated December 27, 2022.
Allotment in the public issue of debt securities should be made on the basis of date of upload of each application into the electronic book of the stock exchange.
However, on the date of oversubscription and thereafter, the allotments should be made to the applicants on proportionate basis.
The Tranche I Issue shall remain open for subscription on Working Days from 10 a.m. to 5 p.m. (Indian Standard Time) during the period indicated above, except that
the Tranche I Issue may close on such earlier date or extended date as may be decided by the Board of Directors of the Company or the Debenture Fund Raising
Committee, thereof, subject to relevant approvals. In the event of an early closure or extension of the Tranche I Issue; the Company shall ensure that notice of the
same is provided to the prospective investors through an advertisement in a daily national newspaper with wide circulation and a regional daily at the place where
the registered office of the Company is situated on or before such earlier or extended date of Tranche I Issue closure. Applications Forms for this Tranche I Issue will
be accepted only from 10:00 a.m. to 5:00 p.m. or such extended time as may be permitted by BSE, on Working Days during the Tranche I Issue Period. On the Tranche
I Issue Closing Date, Application Forms will be accepted only between 10:00 a.m. to 3:00 p.m. and uploaded until 5:00 p.m. (Indian Standard Time) or such extended
time as may be permitted by BSE. Further, pending mandate requests for bids placed on the last day of bidding will be validated by 5 PM on one Working Day after
the Tranche I Issue Closing Date. For further details please refer to the section titled “Issue Related Information” on page 64 of the Tranche I Prospectus.
DISCLAIMER
Edelweiss Financial Services Limited (“Company”), subject to market conditions, and other considerations, is proposing a public issue of secured redeemable
nonconvertible debentures (“NCDs”) and has filed a Shelf Prospectus dated December 27, 2022 (“Shelf Prospectus”) and Tranche I Prospectus dated December 27,
2022 (“Tranche I Prospectus”) (collectively, the “Prospectus”) with the Registrar of Companies, Mumbai, Maharashtra (“RoC”), BSE Limited (“BSE”) and Securities
and Exchange Board of India (“SEBI”). The Prospectus is available on the website of the Company at https://www.edelweissfin.com, on the website of BSE at
www.bseindia.com, on the website of the lead manager at www.equirus.com and on the website of SEBI at www.sebi.gov.in. Investors proposing to participate in
the Issue should invest only on the basis of the information contained in the Prospectus. Investors should note that investment in the NCDs involves a high degree
of risk and for details in relation to the same, refer to the Prospectus, including the section titled “Risk Factors” and “Material Developments” beginning on page 18
and 206 respectively of the Shelf Prospectus.
Capitalised terms not defined herein shall have the same meaning as assigned to such terms in the Shelf Prospectus and Tranche I Prospectus , For further details
please refer to Shelf Prospectus and Tranche I Prospectus dated December 27, 2022
DISCLAIMER: Investors proposing to participate in the Issue should note that investment in the NCDs involves a high degree of risk and for details in relation to the
same, refer to the Shelf Prospectus and the Tranche I Prospectus both dated December 27, 2022 (together “Prospectus”), including the sections titled “Risk Factors”
and “Material Developments” beginning on page 18 and 206 respectively of the Shelf Prospectus. The Issuer and the Lead Manager accept no responsibility for
statements made otherwise than in the Prospectus or in the advertisement or any other material issued by or at the instance of the Company and that anyone placing
reliance on any other source of information would be doing so at their own risk.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE should not in anyway be deemed or construed that the Prospectus
has been cleared or approved by BSE nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer
to the Prospectus for the full text of the Disclaimer Clause of the BSE.
DISCLAIMER CLAUSE OF USE OF BSE ELECTRONIC PLATFORM: It is to be distinctly understood that the permission given by the BSE to use their network and software
of the online system should not in any way be deemed or construed as compliance with various statutory requirements approved by the Exchange; not does it in any
manner warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements; nor does it take any
responsibility for the financial or other soundness of this Company, its promoters, its management or any scheme or project of this Company