Edelweiss Financial Services Limited (EFSL) has unveiled plans for a significant public offering of Secured Redeemable Non-Convertible Debentures (NCDs), aiming to raise up to ₹3,000.00 million. This move marks a notable development in the Indian financial services sector, offering investors an opportunity to participate in a debt instrument from a well-established company.

Key Details of the NCD Issue

• Issue Size: The base issue size is set at ₹1,500.00 million, with a green shoe option of up to ₹1,500.00 million, potentially taking the total issue size to ₹3,000.00 million.
• Face Value: Each NCD will have a face value of ₹1,000.00.
• Tenure Options: The NCDs will be offered with varying tenures of 24 months, 36 months, 60 months, and 120 months.
• Interest Options: Investors can choose from annual, monthly, and cumulative interest payment options.
• Yield: The effective annual interest yield ranges from 9.00% to 10.25% per annum.
• Credit Rating: CRISIL Ratings Limited has assigned a rating of 'CRISIL A+/Stable' to the NCDs.

Issue Timeline and Listing

• Opening Date: September 24, 2025
• Closing Date: October 8, 2025 (subject to early closure or extension)
• Listing: The NCDs will be listed on BSE Limited to provide liquidity to investors.

Utilization of Funds

EFSL has outlined that at least 75% of the funds raised through this issue will be used for repayment or prepayment of interest and principal of existing borrowings. The remaining amount, not exceeding 25% of the raised funds, is earmarked for general corporate purposes, in compliance with SEBI regulations.

Company Background

Edelweiss Financial Services Limited, incorporated in 1995, has evolved from an investment banking firm to a diversified financial services company. With a pan-India presence of 254 domestic offices and 3 international offices, EFSL serves approximately 9.73 million customers. The company's operations span across retail and corporate credit, mutual funds, alternative asset management, asset reconstruction, and insurance businesses.

Market Impact

This NCD issue by Edelweiss Financial Services comes at a time when investors are seeking diverse investment options in the debt market. The offering of secured, redeemable NCDs with varying tenures and attractive yields could appeal to both retail and institutional investors looking for fixed-income opportunities.

The success of this issue could potentially strengthen Edelweiss's financial position, allowing it to optimize its debt structure and support its diverse business operations. For investors, it presents an opportunity to invest in a rated instrument from a known entity in the financial services sector.

As the issue opens, market participants will be keenly watching the response, which could serve as an indicator of investor appetite for corporate debt in the current economic climate.

Disclaimer: Investors are advised to refer to the official prospectus for complete details and risk factors before making an investment decision.

Edelweiss Financial Services Limited (EFSL) has announced a significant move in the debt market with the approval of a public issue of secured, redeemable, non-convertible debentures (NCDs) worth up to ₹3,000 crore. This strategic financial initiative aims to strengthen the company's capital base and provide investors with an opportunity for stable returns.

Issue Details

The NCD issue has a base size of ₹1,500 crore, with a green shoe option allowing for an additional ₹1,500 crore. Each NCD carries a face value of ₹1,000, making it accessible to a wide range of investors. The issue is set to open for subscription on September 24, 2025, and will close on October 8, 2025, subject to early closure or extension as decided by the company's Board of Directors or the Debenture Fund Raising Committee.

Attractive Coupon Rates and Tenors

Investors can choose from ten different series of NCDs, offering varying coupon rates and tenors:

The coupon rates range from 9.00% to 10.25% per annum, catering to different investor preferences for income frequency and investment duration.

Credit Rating and Minimum Investment

CRISIL has assigned a rating of 'A+/Stable' for the NCDs, indicating adequate degree of safety regarding timely servicing of financial obligations and low credit risk. The minimum application amount is set at ₹10,000 for 10 NCDs, allowing for broad participation from retail investors.

Listing and Security

The NCDs will be listed on BSE Limited within six working days from the issue closure. They are secured by a pari passu charge on various assets of the company, including loans, receivables, investments, and immovable properties, maintaining a 100% security cover.

Use of Proceeds

While specific details on the use of proceeds were not provided, such NCD issues typically aim to strengthen the company's capital structure, support business growth, and refinance existing debt.

Tarun Khurana, Company Secretary of Edelweiss Financial Services Limited, confirmed the approval of the issue and the filing of the prospectus with relevant authorities.

This NCD issue by Edelweiss Financial Services presents an opportunity for investors seeking fixed-income investments with attractive returns. However, potential investors should carefully consider the terms, risks, and their own financial goals before making an investment decision.