Edelweiss Financial Services Secured Redeemable NCD public issue opens on 21 April 2021 and closes on 23 April 2021. Base size of this issue is INR 200 Crores with an option to retain over subscription of INR 200 Crores i.e. a green shoe option aggregating up to a total of INR 400 Crores. The face value of this bond is INR 1000 with minimum 10 bonds for INR 10,000 to be subscribed and beyond this an individual can subscribe in multiples of 1 bond each. It is available with 7 different options of tenure ranging from 36 months to 60 months or 120 months. Category I, II, III, IV including retail investors are governed by Coupon Rates ranging from 9.1% to 9.7% to which interest accrued is payable depending upon the option chosen i.e. monthly or annually. Being allotted on first come first serve basis these bonds are proposed to be listed on BSE within 6 working days of the closure of this issue, hence these are highly liquid investments.
More about the company:
Founded in 1993 in Mumbai as Edelweiss Financial Services Limited (EFSL) it started to operate as an Investment banker and Merchant banker. It is also active in the areas of wealth management, credit, corporate and retail credit, insurance, asset reconstruction and general insurance through its. The company has 47 subsidiaries including HFC and NBFC’s, at 339 offices in 145 cities in India and 6 such locations abroad. It also owns a hefty work force of 9,197 employees all across as on Sept. 2020.
What is the value of this bond?
The Face Value of this NCD bond is INR 1000 per each. Minimum investment criterion for a Retail Individual investor is 10 bonds of the value of INR 10,000 and over and above this one can invest in multiples of 1 bond.
When does this public issue open?
The public issue to these secured redeemable NCD’s open for subscription on Thursday, 1st April 2021 and closes on Friday, 23rd April 2021.
What is the size of this public issue?
The total issue size is INR 400 Crores which includes base issue of INR 200 Crores along with green shoe option to retain over subscription of INR 200 Crores.
What are the credit ratings for ESFL NCD’s?
These NCD’s are rated for high degree of safety in terms of timely servicing of financial obligations and carry low credit risk. They are rated as Acuite AA – Outlook Negative and BWR AA-/ Stable.
Details of the various coupons:
|
NO. OF YEARS |
MONTHLY INTEREST PAYOUT | ANNUAL INTEREST PAYOUT | CUMULATIVE INTEREST PAYOUT |
| 3 Years | NA | 9.10% p.a. | 9.10%p.a.(yield) |
| 5 Years | 9.16% p.a. | 9.55% p.a. | 9.55%p.a.(yield) |
| 10 Years | 9.30% p.a. | 9.70% p.a. | NA |
What is the allotment criterion to the issue?
The allotment is done on first come first serve basis, so the issue can be closed even before the closure date if it is oversubscribed before that date disclosed as such.
Who are the promoters to the company?
Vidya Shah, Venkatchalam Ramaswamy, Aparna T.C. and Rashmesh Shah are the promoters of the company.
What are the objectives behind this public issue?
The main objectives behind the public issue is to prepay/repay the interest of the principal borrowings of the company and to use these funds against general corporate purposes.
Who cannot subscribe to the issue?
NRI.s cannot apply to the public issue of redeemable convertible NCD.
Who is the lead manager to this issue?
Edelweiss Broking Ltd is the lead manager to the public issue.
How to subscribe to this NCD?
One can apply to this issue online or from the broker’s site where one already has a DEMAT account because it is available for subscription only in DEMAT form. Application forms can be easily downloaded from the lead manager’s website. Prospectus can always be used for any help.
