Edelweiss Financial announces Rs 400 crore public issue of secured redeemable NCDs
Mumbai : Edelweiss Financial Services Ltd (EFSL) on Wednesday announced the public issue of secured redeemable non-convertible debentures (NCDs) with a face value of Rs 1,000 each, amounting to Rs 200 crore base issue with an option to retain over-subscription up to Rs 200 crore aggregating to a total of Rs 400 crore issue.
There are seven series of NCDs carrying fixed coupon and having tenures ranging from 36 months, 60 months and 120 months with annual, monthly and cumulative interest option.
The effective annual yield for NCDs having fixed interest rates ranges from 9.09 to 9.7 per cent. At least 75 per cent of the funds raised through this issue will be used for the purpose of repayment or prepayment of interest and principal of existing borrowings of the company.
The balance is proposed to be utilised for general corporate purposes, subject to such utilisation not exceeding 25 per cent of the amount raised in compliance with the Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations 2008.
An additional incentive maximum of 0.2 per cent per annum will be offered for all category of investors in the proposed issue who are also holders of NCDs and bonds previously issued by the company.
Equirus Capital is the lead manager of the NCD issue which opens on April 1 and closes on April 23 with an option of early closure. The NCDs will be listed on BSE Ltd to provide liquidity to investors.