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.

Edelweiss Financial Services has released a compelling business update for its wholly owned subsidiary, Edelweiss Asset Management Limited, showcasing remarkable growth and market penetration in the mutual fund industry.

Strong Asset Growth and Market Share Expansion

Edelweiss Asset Management reported total mutual fund assets under management (AUM) of ₹1.38 lakh crore ($16.60 billion), with equity AUM reaching ₹60,725 crore ($7.30 billion). The firm has demonstrated exceptional performance, achieving a five-year compound annual growth rate (CAGR) of 44.00%, significantly outpacing the industry average of 24.00%.

Key Performance Metrics

The company's growth is further underscored by several impressive metrics:

• SIP Book: ₹382 crore ($46.00 million) with a robust five-year CAGR of 62.00%, compared to the industry growth of 25.00%.
• Retail Folios: 2.60 million, growing at a five-year CAGR of 50.00%, surpassing the industry growth of 21.00%.
• Equity Market Share: Increased from 0.70% to 1.30% between FY20 and FY25.
• Revenue Growth: 40.00% CAGR, reflecting strong financial performance.
• Overall Ranking: 20th by total AUM in the industry.

Extensive Distribution Network

Edelweiss Asset Management has built a formidable presence across India, operating through:

• Over 15,400 active distributors
• 45 locations
• Coverage of 24,000+ pin codes

This extensive network has been instrumental in the company's rapid growth and market penetration.

Innovative Product Offerings

The company has distinguished itself by launching several industry-first products, including:

• India's first Corporate Bond ETF (Bharat Bond)
• Innovative fund offerings across:
  • Fundamental investing
  • Factor investing
  • Fixed income categories

These product innovations have likely contributed to Edelweiss Asset Management's ability to attract investors and grow its AUM at an accelerated pace.

Industry Outperformance

The update highlights Edelweiss Asset Management's significant outperformance compared to industry averages:

This consistent outperformance across key metrics demonstrates the company's strong positioning and effective growth strategies in the competitive mutual fund landscape.

The impressive growth figures and expanding market share indicate that Edelweiss Asset Management is successfully capitalizing on the growing investor interest in mutual funds in India. With its innovative product lineup and extensive distribution network, the company appears well-positioned to continue its growth trajectory in the asset management sector.