Edelweiss Financial’s Rs 200 Crore NCDs: A Golden Investment Chance

Edelweiss Financial Services has filed a public issue of Secured Redeemable Non-Convertible Debentures (NCDs) raising up to Rs 200 crore with a base size of Rs 100 crore and an option of Rs 100 crore over and above through a green shoe option. The NCDs, each with a face value of Rs 1,000, will have coupon rates between 9.5% and 11%, and an extra 2% interest for delay in repayment or allotment. The issue will open on April 8, 2025, and close on April 24, 2025.

The raised funds will be utilized mainly to retire or prepay outstanding borrowings (75%) and general corporate expenses (25%). The NCDs have been assigned a CRISIL A+/Stable rating, reflecting sufficient safety for the servicing of financial obligations in a timely manner. There are options for tenors of 24, 36, 60, and 120 months with annual, monthly, or cumulative interest payout choices.

This move underscores Edelweiss's emphasis on retail lending through co-lending alliances while dealing with its wholesale loan book. The NCDs will be listed on the BSE to provide liquidity to investors.

Source: Business Standard, Economic Times