Edelweiss Financial raises ₹450 crore via NCD issue, closes issue early

Edelweiss Financial Services Ltd on Monday announced that it has allotted 45,62,472 NCDs amounting to ₹456.24 crore from the issue of secured non-convertible debentures. The financial services company received over 16,000 applications pan India.

The company decided to do an early closure of the issue on 22 December 2021 against the scheduled closure on 27 December.

Edelweiss Financial Services on 6 December had launched the NCD issue with a face value of ₹1,000 each, aimed to raise ₹200 crore (base issue), with an option to retain oversubscription up to ₹300 crore, aggregating to a total of ₹500 crore.

The issue has seen significant demand in the retail and the high net worth individual (HNI) segment with a total collection of ₹361.97 crore. The issue also saw good interest from the existing investors.

Almost 46% of the total issue size got subscribed for five years and 10 years tenure.

Commenting on the Issue, Rashesh Shah, chairman, Edelweiss Group, said, “The consistently positive feedback to our NCD issues reassures us of the faith bestowed by the investors. The subscription to the issue was very good and we closed it earlier than planned.”

The issue has seen interest from investors across series and tenures offering annual, monthly and cumulative interest options.

There were 10 series of NCDs carrying fixed coupon and having tenure of 24 months, 36 months, 60 months and 120 months with annual, monthly and cumulative interest option. Effective annual yield for NCDs ranged from 8.75% to 9.70% per annum.

The NCDs have been rated AA- with a negative outlook by rating agency Crisil Ltd and AA with a negative outlook by Acuité Ratings & Research Ltd.

Equirus Capital Pvt Ltd acted as the lead Manager to the Issue. The NCDs are listed on BSE Ltd.