Fixed Income, Flexible Future: Edelweiss Rolls Out High-Yield NCDs

Image Source: Wint Wealth

Edelweiss Financial Services Ltd (EFSL) has launched a public issue of secured, redeemable nonconvertible debentures (NCDs) worth ₹300 crore, offering investors a range of tenors and attractive coupon rates. The issue opened on July 8 and will close on July 21, 2025.

Key Highlights:

The base issue size is ₹150 crore with a green shoe option of an additional ₹150 crore, totaling ₹300 crore.
NCDs are priced at ₹1,000 each with a minimum application size of ₹10,000.
Tenors range from 24 to 120 months, with coupon rates between 9% and 10.5% per annum depending on the series and payment frequency.
The highest yield of 10.5% is offered on 120month annual and monthly payout options.

Investor Allocation and Ratings:

Allocation is split across four categories: 40% for retail investors, 40% for HNIs, and 10% each for institutional and noninstitutional investors.
The issue is rated CRISIL A with a stable outlook, indicating adequate safety and low credit risk.

Use of Proceeds:

Funds raised will be used for repayment or prepayment of existing borrowings and for general corporate purposes.
The NCDs will be listed on BSE and allotted on a firstcome, firstserved basis.

Company Snapshot:

EFSL, a diversified financial services firm, operates across credit, asset management, insurance, and wealth management through 27 subsidiaries.
As of FY25, the company reported a revenue of ₹9,518.71 crore and a PAT of ₹535.82 crore.

Sources: Chittorgarh, The Fixed Income, Business Standard, Edelweiss Financial Services Corporate Filings, SEBI Prospectus