Edelweiss Financial to raise upto Rs 200 cr via NCDs

Edelweiss Financial Services on Monday (21 December 2020) announced that it will raise upto Rs 200 crore through public issue of secured redeemable non-convertible debentures (NCDs).

The company announced a public issue of secured redeemable non-convertible debentures (NCDs) of a face value of Rs 1,000 each, amounting to Rs 100 crore, with an option to retain oversubscription up to Rs 100 crore, aggregating to a total of Rs 200 crore.

The NCDs offer an effective yield (cumulative) of 9.95% p.a. for 120 months tenure, 9.35% p.a. for 36 months tenure and up to 9.80% p.a. for 60 months tenure.

Edelweiss said that 75% of the funds raised through this issue will be used for the purpose of repayment /prepayment of interest and principal of existing borrowings of the company and the balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount raised in the issue.

CARE Ratings has rated the offering "CARE A+ with a stable outlook and Brickwork Ratings India has rated it as BWR AA-/Stable (Assigned)".

Edelweiss Financial Services is engaged in providing investment banking and advisory services, and holding activities/investments. The company's segments include agency business, capital-based business and life insurance.

Shares of Edelweiss Financial Services were down 1.99% at Rs 71.25.

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