Edelweiss Financial Services Ltd on Monday announced the public issue of secured redeemable non-convertible debentures (NCDs) of a face value of Rs 1,000 each amounting to Rs 100 crore with an option to retain over-subscription up to Rs 100 crore aggregating to a total of Rs 200 crore.
The NCDs offer a cumulative yield of 9.95 per cent per annum for 120 months tenure, 9.35 per cent per annum for 36 months tenure and up to 9.8 per cent per annum for 60 months tenure.
About 75 per cent of the funds raised through the issue will be used for repayment and prepayment of interest and principal of existing borrowings of the company.
The balance is proposed to be utilised for general corporate purposes, subject to such utilisation not exceeding 25 per cent of the amount raised in the issue in compliance with regulations.
The issue opens on December 23 and closes on January 15 with an option of early closure. The NCDs will be listed on BSE Ltd to provide liquidity to the investors.
Equirius Capital Pvt Ltd is the lead manager of the NCD issue. Care Ratings has rated the offering A-plus with stable outlook and Brickwork has rated it as AA-minus with stable outlook.
Edelweiss reported a net loss of Rs 2,045 crore during FY20 compared with a profit of Rs 995 crore during FY19. The profitability was significantly impacted by increase in impairment costs.
Edelweiss, incorporated in 1995 by Rashesh Shah and Venkat Ramaswamy, is the holding company of the group. The group has a presence in diversified businesses like retail lending, wholesale lending, asset reconstruction, wealth management, asset management, broking, capital markets, life insurance and general insurance.
The promoter group holds 32.92 per cent stake while the management and employees have 12.3 per cent stake in the group which has 47 subsidiaries.
( With inputs from ANI )
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