ECL Finance seeks Sebi nod to raise Rs 500 cr via NCDs

ECL Finance, part of financial services group Edelweiss, has sought Sebi approval to raise Rs 500 crore through non-convertible debentures.

ECL Finance is planning to garner Rs 250 crore through public issue of secured redeemable non-convertible debentures. (NCDs) with an option to retain over-subscription of up to Rs 250 crore, aggregating up to Rs 500 crore, the company said in the draft prospectus filed with Sebi.

The public issue by ECL Finance of NCDs are of the face value of Rs 1,000 each.

NCDs are loan-linked securities issued by a company and can't be converted into stocks. They usually carry a higher interest rate than a convertible debenture.

ECL Finance will use the funds to financing activities including lending and investments as well as to repay loans. The funds will also be utilised for business operations including capital expenditure and working capital requirements.

ICICI Securities, Axis Capital and Edelweiss Financial Services are the lead managers while Link Intime India is the registrar to the issue.

The NCDs offered are proposed to be listed on BSE, the prospectus said.

Mumbai-based ECL Finance provides non-banking financial services.