Edelweiss-Financial-Services-Limited-ncd-elitewealth

Edelweiss Financial Services Limited NCD Company Profile:

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 and global geographies. The company’s single-minded focus and continuous is on understanding customers’ needs and offering the right financial solutions. Present in every financial life stage of a customer, helping them create and grow wealth, and protect everything, are the key lines of business of the company.

  • Retail Credit (Home Loans, SME and Business Loans)
  • Asset Management (Mutual Funds and Alternative Assets)
  • Asset Reconstruction
  • Insurance (Life, General)

This diversified business model reflects Edelweiss Financial Services Limited’s experience across India’s multiple consuming facets, from large companies and industrial behemoths to small businesses as well as the average Indian urban and rural household. Together with a strong network of Authorized Persons and 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 a face value of ₹ 1000 each, a Base Issue size of ₹ 125 Crore, and an option to retain oversubscription up to ₹ 125 Crore aggregating up to ₹ 250 crores. The issue opens for subscription on Tuesday, 9th January 2024, and will close on or before Monday, 22nd January 2024. The allotment is on a first come first serve basis with the minimum application to be made of 10 NCDs.

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    Edelweiss Financial Services Limited NCD Details:

    Tranche Issue opens: Tuesday, 9th January 2024
    Tranche Issue closes: Monday, 22nd January 2024
    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 “The NCDs proposed to be issued under this Issue have been rated “CRISIL A+/Stable (pronounced as CRISIL A plus rating with Stable outlook)” and “ICRA A+/rating watch with negative implications (pronounced as ICRA A plus placed on rating watch with negative implications)”
    Tranche Issue Size Public issue of Secured Redeemable NonConvertible Debentures by Edelweiss Financial Services Limited (“the Company”) of NCDs for an amount of ₹ 125 crores (“Base Issue Size”), with an option to retain over- subscription up to ₹ 125 crores aggregating up to ₹ 250 crores
    Minimum Subscription: The minimum subscription is 75% of the Base Issue, i.e., ₹ 93.75 crores
    Registrar: KFIN Technologies Limited
    Category I – Institutional (“QIB”) II – Non-Institutional (“Corporates”) III – High Net worth

    Individual (“HNI”)

    (Amount aggregating to

    above ₹ 10 lakh)

    IV – 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 ₹ 250 Cr₹ ₹ 25 Cr ₹ 25 Cr ₹ 100 Cr ₹ 100 Cr

                                      Edelweiss Financial Services Limited NCD

    Application form

    Edelweiss Financial Services Limited NCD Specific Terms of the Prospectus:

    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 8.95% 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 8.94% 8.95% 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 ₹1,187.

    30

    ₹ 1,000/- ₹ 1,000/- ₹1,317.

    00

    ₹1,000 ₹1,000 ₹1,618. 70 ₹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

    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 A+. 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.