Edelweiss Financial Services Limited (EFSL) has announced the successful completion of a strategic merger between two of its wholly owned subsidiaries. The company informed that Edelweiss Retail Finance Limited (ERFL) has been amalgamated into ECL Finance Limited (ECLF), marking a significant corporate restructuring within the Edelweiss group.

Merger Details

The merger, which became effective on September 30, was sanctioned by the National Company Law Tribunal (NCLT), Mumbai. Key points of the merger include:

• The NCLT approved the scheme of amalgamation on September 12.
• A certified copy of the NCLT order was filed with the Ministry of Corporate Affairs on September 30, making the merger effective from that date.
• As a result of the amalgamation, Edelweiss Retail Finance Limited has ceased to be a subsidiary of Edelweiss Financial Services Limited.

Regulatory Compliance

In compliance with the Securities and Exchange Board of India (SEBI) Listing Obligations and Disclosure Requirements Regulations, 2015, Edelweiss Financial Services Limited promptly informed the stock exchanges about this development. The company submitted an intimation to both the BSE Limited and the National Stock Exchange of India Limited on October 1.

Impact on Corporate Structure

This merger is part of Edelweiss Financial Services' ongoing efforts to streamline its corporate structure. By consolidating ERFL into ECLF, the company aims to optimize its operations and potentially improve efficiency within its financial services ecosystem.

The amalgamation of these wholly owned subsidiaries is expected to simplify the group's structure, which may lead to better resource allocation and operational synergies.

As Edelweiss Financial Services continues to evolve its corporate strategy, this merger represents a significant step in reshaping its subsidiary structure.

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.