The share price of Edelweiss Financial Services jumped nearly 4% as the firm launched a Rs 300 crore public issue of secured redeemable non-convertible debentures (NCDs). The base issue size is Rs 150 crore, and the remaining Rs 150 crore is available under a green shoe option. 

The issue, which opened today, September 21, will close on October 5. 

Edelweiss NCD effective yield at 10% PA

The financial services company’s issue comprises 10 series of NCDs with a tenure of 24 months, 36 months, 60 months, and 120 months. These securities have a fixed coupon rate, and their effective yield ranges from 8.64% to 10% per annum. 

The NCDs have been rated ‘Crisil A+/Stable’ by Crisil Ratings, and their trading will take place in dematerialised form only, the company added in its exchange filing.

ALSO READ

Majority funds to be used for debt repayment 

At least 75% of the funds raised will be deployed for repayment/prepayment of the interest and principal of Edelweiss Financial Services’ existing borrowings. The balance amount will be used for the purpose of general corporate purposes. 

However, the remaining capital shall not exceed 25% of the raised amount, subject to regulatory compliances. The funds shall not be utilised towards the repayment of any penalty. 

The issue is being managed by Trust Investment Advisors Private, Nuvama Wealth Management, and Tipsons Consultancy Services. 

These NCDs will be listed only on BSE to ensure sufficient liquidity for investors. 

In case of oversubscription, the applications shall be allotted to the investors on a proportionate basis. 

Edelweiss Financial Services share price

The company’s share price was up nearly 3% in Monday’s intraday trade. Over the past one month, its stock has delivered a return of 10%, while over the past six months, its share price has increased by 35%. 

About Edelweiss Financial Services

The company functions as an investment banking firm under the name of Edelweiss Capital Services. It functions through its various subsidiaries in businesses like retail, corporate credit, mutual funds, and so on. It is headquartered in Mumbai, Maharashtra.