₹200-crore public NCD issue of Edelweiss Financial Services gets oversubscribed1 min read . Updated: 05 Jan 2021, 03:41 PM IST
- The retail category of the issue has been oversubscribed by 2.27 times with a total collection of about ₹181 crore, Edelweiss Financial Services said
- The issue was closed early on 4 January. The issue was originally scheduled to close on 15 January
Edelweiss Financial Services Ltd (EFSL) on Tuesday said its ₹200-crore public issue of secured redeemable non-convertible debentures (NCDs) "mobilised over ₹240 crore with the base issue as well as the greenshoe option fully subscribed." Edelweiss Financial Services’ NCD issue opened for subscription on 23 December, 2020, and was closed early on 4 January, 2021. The issue was originally scheduled to close on 15 January.
The base size of the issue was ₹100 crore, with an option to retain over-subscription up to ₹100 crore, the company stated. Equirius Capital Private Limited was the lead manager of this NCD issue. The bonds were offering an effective yield (cumulative) of 9.95% per annum for 120 months tenure, 9.35% per annum for 36 months tenure and up to 9.80% per annum for 60 months tenure. An additional incentive maximum of 0.20% per annum were offered for all category of investors in the proposed issue, who are also the holders of bonds previously issued by the company, or its group companies — ECL Finance, Edelweiss Housing Finance, Edelweiss Retail Finance and Edelweiss Finance and Investments and/ or are equity shareholders of Edelweiss Financial Services, the release said. Care Ratings rated the offering CARE A; with stable outlook and Brickwork Ratings India Private has rated it as BWR AA-/Stable (Assigned).
"The retail category of the issue has been oversubscribed by 2.27 times with a total collection of about ₹181 crore (based on the subscription figures available on the electronic platform of BSE as on January, 2021)," the company said in a statement. The issue received about 10,647 applications across India.
Rashesh Shah, chairman, Edelweiss Group said, “We are delighted with the great response to the NCD issue. The issue has been oversubscribed and we are closing it much earlier than planned."
The company earlier mentioned 75% of the funds raised through the issue will be used for the purpose of repayment/prepayment of interest and principal of its existing borrowings and the balance is proposed to be utilized for general corporate purposes.