Edelweiss Financial Services on Wednesday said it will raise up to Rs 400 crore through a public issue of secured redeemable non-convertible debentures (NCDs). The issue will open on October 3 and close on October 17, with an option for an early closure.
The company will issue 20 lakh NCDs of face value of Rs 1,000 each, totalling to Rs 200 crore, and will retain an option to raise another Rs 200 crore from over-subscriptions, according to an exchange filing.
The company will issue ten series of NCDs with fixed coupon and tenure ranging from 24-120 months. The yearly yield on the NCDs will be between 8.84% and 10.09%.
The company will use 75% of the funds for repaying earlier debt and 25% for corporate purposes. The NCDs proposed to be issued are rated ‘CRISIL AA-‘ with a negative outlook. In November 2021, the company had approved raising Rs 500 crore through public issue of NCDs.
Separately, the company has invested Rs 250 crore into its subsidiary, Edelweiss Tokio Life Insurance, through a rights issue. Edelweiss has subscribed to 250 million shares of Rs 10 each of the insurer. With this investment, the shareholding of the company in the insurance subsidiary has increased to 75.08% from 66%.