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Edelweiss Financial Services' NCD opens today: Here are key things to know

Edelweiss Financial Services' NCD opens today: Here are key things to know

Edelweiss Financial Services' NCD opens today: Here are key things to know
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By CNBCTV18.com Oct 3, 2022 4:32:14 PM IST (Published)

They carry a face value of Rs 1,000 each, amounting to Rs 200 crore (base issue), with an option to retain over-subscription up to another Rs 200 crore, aggregating to a total of Rs 400 crore (tranche II issue). Other deets here

Edelweiss Financial Services Limited (EFSL) has recently announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) worth Rs 400 crore. The tranche II issue for the same has opened today and will close on October 17.

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There is an option of early closure too, Edelweiss said in a statement.
They carry a face value of Rs 1,000 each, amounting to Rs 200 crore (base issue), with an option to retain over-subscription up to another Rs 200 crore, aggregating to a total of Rs 400 crore (tranche II issue).
There are ten series of NCDs carrying fixed coupon and having tenure of 24 months, 36 months, 60 months and 120 months with annual, monthly and cumulative interest option. Effective annual yield for NCDs ranges from 8.84 percent to 10.09 percent, Edelweiss said.
At least 75 percent of the funds raised through this 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 percent of the amount raised in the issue, in compliance with the Securities and Exchange Board of India, it said.
Edelweiss further said that an additional incentive of 0.20 per cent per annum will be offered for all category of investors in the proposed issue, who are also holders of NCD(s)/Bond(s) previously issued by Edelweiss or Edelweiss group companies.
The NCDs to be issued under this tranche II issue have been rated “CRISIL AA-/Negative” and “ACUITE AA-/Negative”. The NCDs will be listed on BSE Limited to provide liquidity to the investors.
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 percent from 66 percent.
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