The NBFC on Wednesday announced the public issue of secured redeemable non-convertible debentures of the face value of R 1,000 each, amounting to Rs 200 crore with an option to retain over-subscription up to Rs 200 crore.
Edelweiss said there are eight series of NCDs carrying fixed coupon and having tenure of 36 months, 60 months and 120 months with annual, monthly and cumulative interest option. Effective annual yield for NCDs ranges from 9.09% to 9.70%.At least 75% of the funds raised through the 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.
The NCDs proposed to be issued have been rated Acuite AA (read as ACUITE double A) with a negative outlook by Acuite Ratings and Research and revalidated by ICRA with [ICRA] A+ (Negative) for an amount of Rs 400 crore.
Edelweiss said an additional incentive maximum of 0.20% p.a. will be offered for all category of investors in the proposed issue, who are also holders of NCD/Bond(s) previously issued by Edelweiss Financial Services, and/or its group companies.
The Edelweiss Group is a diversified financial services companies, providing a broad range of financial products and services. Its businesses include asset management, NBFC, housing finance, asset reconstruction, wealth management, life insurance, general insurance and insurance broking.
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On a consolidated basis, the company reported a net profit of Rs 18 crore in Q1 FY22 as compared to net loss of Rs 245 crore in Q1 FY21. Total income declined 13% to Rs 1670.44 crore in Q1 FY22 over Q1 FY21.
Shares of Edelweiss Financial Services were up 3.84% at Rs 83.85 on BSE.
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