Edelweiss Financial Services is set to introduce a new NCD issue, scheduled for subscription opening on October 6, 2023. Edelweiss Financial Services, a prominent player in the investment banking sector, boasts a diverse range of businesses, encompassing retail, corporate credit, wealth management, and more. The NCDs being offered come with attractive interest rates and investors can opt for various tenures, including 24 months, 36 months, 60 months, and 120 months.
Furthermore, investors have the flexibility to choose between monthly, annual, or maturity-based interest payment options.
Issue Highlights
| Issuer | Edelweiss Financial Services Limited |
| Issue Opens | Friday, October 06, 2023 |
| Issue Closes | Thursday, October 19, 2023 |
| Allotment | First Come First Serve Basis |
| Face Value | Rs. 1000 per NCD |
| Issue Price | Rs. 1000 per NCD |
| Nature of Instrument | Secured Redeemable Non – Convertible Debentures |
| Minimum Application | 10 NCDs (Rs. 10,000) and in multiples of 1 NCD thereafter |
| Listing | BSE |
| Rating | CRISIL AA-/ Negative |
| Registrar | KFin Technologies Limited |
Issue Break up
| Category | Allocation | Amount in Crs | |
| Base Issue | Issue | ||
| Institutional Investors | 10% | 10 | 20 |
| Non-Institutional Investors | 10% | 10 | 20 |
| HNI | 40% | 40 | 80 |
| Retail Individual Investors | 40% | 40 | 80 |
| Total | 100% | 100 | 200 |
About Issuer
Edelweiss Financial Services was established on November 21, 1995, initially operating under the name Edelweiss Capital Limited. It began its journey as an investment banking firm after obtaining a Category II license from SEBI. Subsequently, on October 16, 2000, Edelweiss Capital Limited was granted a Category I Merchant Banker license by SEBI. On August 1, 2011, the company’s name was officially changed to Edelweiss Financial Services Limited.
Edelweiss Financial Services Limited has since diversified its business operations through its subsidiary companies. These diversifications now include various sectors such as
- Credit Service – Edelweiss Financial Service Limited provides a variety of credit services, which encompass both retail and corporate credit solutions.
- Asset Management – It provides asset management services that encompass mutual funds and portfolio management.
- Asset Reconstruction – EFSL is also engaged in asset reconstruction and the management of assets.
- Insurance – It conducts operations within the insurance industry, covering both life and general insurance.
- Wealth Management – The company offers wealth management services to individuals and businesses.
Yield Per Annum (p.a)
| Series | I | II | III | IV* | V | VI | VII | VIII | IX | X |
| Frequency of Interest Payment | Yrly | NA | Mthly | Yrly | NA | Mthly | Yrly | NA | Mthly | Yrly |
| Minimum Application | ₹ 10,000 (10 NCDs) across all Series | |||||||||
| Face Value/ Issue Price of NCDs (₹/ NCD) | ₹1,000 | |||||||||
| In Multiples of thereafter (₹) | ₹ 1,000 (1 NCD) | |||||||||
| Tenor | 24 mth | 24 mth | 36 mth | 36 mth | 36 mth | 60 mth | 60 mth | 60 mth | 120 mth | 120 mth |
| Coupon (% per annum) for NCD Holders in Category I, II, III & IV | 8.95% | NA | 9.20% | 9.60% | NA | 9.67% | 10.10% | NA | 10.00% | 10.45% |
| Effective Yield (per annum) for NCD Holders in Category I, II, III & IV | 8.94% | 8.95% | 9.59% | 9.59% | 9.60% | 10.10% | 10.09% | 10.10% | 10.46% | 10.44% |
| Mode of Interest Payment | Through various modes available | |||||||||
| Amount (₹ / NCD) on Maturity for NCD Holders in Category I, II, III & IV | 1,000 | 1,187.30 | 1,000 | 1,000 | 1,317 | 1,000 | 1,000 | 1,618.70 | 1,000 | 1,000 |
| Maturity / Redemption Date (Months from the Deemed Date of Allotment) | 24 mth | 24 mth | 36 mth | 36 mth | 36 mth | 60 mth | 60 mth | 60 mth | 120 mth | 120 mth |
| Put and Call Option | NA | NA | NA | NA | NA | NA | NA | NA | NA | NA |
Additional interest of 0.20% p.a to existing shareholders and bondholders of Edelweiss Group Company
Strengths of Edelweiss Financial Services Limited
- Prompt Claim Settlement – The company has streamlined its claim settlement procedure and due to that boasts an impressive 83.44% claim settlement ratio, reflecting its commitment to swift claim processing.
- Branch and Advisor Network – Edelweiss Financial Services boasts a network of 51,723 insurance advisors and operates through 121 branches, spanning over 90 cities. Their advisors receive competitive commissions for promoting Edelweiss products.
- Service Quality – Edelweiss Financial Services adopts a customer-centric approach and maintains the highest governance standards to ensure top-notch service delivery.
- Insurance Premium – Edelweiss Financial Services offers highly competitive insurance premiums and provides a variety of premium payment options to cater to diverse customer needs.
- Robust Training – The company places significant emphasis on training its extensive workforce of over 11,000 employees and advisors. Edelweiss Financial Services maintains a state-of-the-art training infrastructure to ensure that its representatives effectively represent the company.
Conclusion
In conclusion, the EDELWEISS FINANCIAL SERVICES Limited NCD Public Issue in October 2023 represents an important financial opportunity for investors. With its diverse range of credit services, asset management offerings, and involvement in the insurance sector, Edelweiss Financial Services demonstrates a commitment to serving various financial needs. By participating in this public issue, investors have the potential to benefit from the company’s financial expertise and market presence. However, as with any investment, it’s crucial for individuals to conduct thorough research, consider their financial goals, and assess the associated risks before making any investment decisions.