“If you don’t follow the bond market, you are missing some amazing drama.”
Ride the wave of capital preservation. Gather your friends and family. Call if you have to, but don’t miss out on the bidding on the IPO bond. Edelweiss Financial Services is all set to open the gates for investors for IPO bidding on December 6th this year.
Edelweiss is one of India’s leading financial services conglomerates, offering a robust platform to a diversified client base across domestic and global geographies. They are mainly in the business of providing credit to both retail and corporate, Investment & Advisory (Wealth Management, Asset Management), and Insurance (Life, General)
The Edelweiss IPO has been rated AA by CRISIL Rating Limited and provides interest up to 9.70% and up to a tenure of 120 months. All you need to do is set a reminder on the BondsIndia website and place your bid as we send you a reminder when it goes live.
About the Company (company stats, standings, etc.)
| Issuer | Edelweiss Financial Services Limited |
|---|---|
| Type of instrument | Secured, Redeemable, Non-Convertible Debenture |
| Listing | To be listed on BSE |
| Issue Size | Base Issue size of Rs 200 Crore with an option to retain oversubscription up to Rs 300 Crore aggregating up to Rs 500 crore being the Issue size. |
| Issue Price | Rs 1000 per NCD |
| Minimum Investment | Rs. 10,000 |
| Issue Opening Date | December 6, 2021 |
| Issue Closing Date | December 27, 2021 |
| Mode of Issuance | Dematerialized mode only |
| ISSUE STRUCTURE | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Option/Series | I | II | III | IV | V | VI | VII | VIII | IX | X |
| frequency of interest payments | Annual | NA | Monthly | Annual | NA | Monthly | Annual | NA | Monthly | Annual |
| Nature of Indebtedness | Secured | |||||||||
| Face value/Issue price of NCDs (Rs/NCD) | Rs 1000/- | |||||||||
| Minimum Application | Rs 10000/- (10 NCDs) across all Series | |||||||||
| In Multiples of thereafter (Rs) | Rs 1000/- (1 NCD) | |||||||||
| Tenor | 24 Months | 24 Months | 36 Months | 36 Months | 36 Months | 60 Months | 60 Months | 60 Months | 120 Months | 120 Months |
| Coupon (% per annum) for all Categories | 8.75% | NA | 8.75% | 9.10% | NA | 9.15% | 9.55% | NA | 9.30% | 9.70% |
| Effective Yield (p.a) category I, II, III, IV | 8.75% | 8.75% | 9.10% | 9.09% | 9.10% | 9.54% | 9.54% | 9.55% | 9.70% | 9.69% |
| Amount (Rs/ Per NCD) on Maturity | 1,000 | 1,182.65 | 1,000 | 1,000 | 1,299 | 1,000 | 1,000 | 1,578.25 | 1,000 | 1,000 |
Edelweiss Financial Service Financial Performance
Key Strengths and Credit Risks
Key Strengths
- The diversified business profile group has been diversifying within each of its key businesses, as well as entering new businesses over the past few years. It is now present in the retail and wholesale lending segments, securities broking, wealth management, asset management, insurance, stressed-asset management, and alternate assets. Many of these have now attained sizeable scale and are likely to lend greater stability to earnings.
- Demonstrated ability to build significant competitive positions across businesses while the group remains a large player in the traditional broking business, it has also built a sizeable lending book. In the distressed assets segment, EARC remains the largest ARC in India. The established market position in capital market-related businesses should provide the group with a regular stream of fee-based income over the medium term.
Credit Risks
- Asset quality exposed to risks related to concentration in wholesale lending asset quality in the credit business has deteriorated in the last 18 months. While the asset quality in the retail loan book remained comfortable, the asset quality in the wholesale loan book deteriorated significantly Furthermore, given the current macro environment, the asset quality of the group’s exposures to loans against property (LAP) and micro loans, SME sectors would be key monitorable. This stems from the sensitivity of borrowers of such loans to the current environment.
- Lower profitability than peer profitability has been lower than those of other large, financial sector groups. While profitability was on an improving trend over the past few fiscal, it has been significantly impacted in fiscal 2020. With higher credit costs, return on assets (annualized) and return on equity (annualized) fell sharply to 0.5% and 3.4%, respectively, during the first 9 months of fiscal 2020 (1.6% and 12.6%, respectively, in fiscal 2019). Provisioning costs, increased by 71% year-on-year (y-o-y) to Rs 651 crore during this period.
Why choose Bonds India?
Bonds India is an online platform for fixed-income securities such as IPOs, Bonds, 54EC bonds, and fixed deposits. With a cumulative pedigree of 50+ years in the bond market, we aim to democratize the market for common investors by stationing detailed insights, and expert advice, and keeping a close watch on the market sentiment. Bonds India brings up-to-date information when IPOs go live, fixed deposits with higher interests, and bonds with a competitive price before anyone else.
Bonds India ditches the traditional ways of investing by offering a blockchain-based platform for investors that ensures instant online settlements and reduces counter-party risks. Choose Bonds India for its sleek interface, fail-safe communication, and a step-by-step guide to ensure a well-placed bid. You can apply for Edelweiss Financial Services Limited NCD IPO on BondsIndia’s website.
Place your bid in three simple steps:
| Key in Basic Details> | Choose the IPO Series> | Place the bid |
|---|
How to invest in Edelweiss Financial Services Limited NCD IPO December 2021 IPO?
The application process on the Bonds India platform is simple and seamless.
- Click on the details of the company on the home page.
- Fill in the Application form with the basic details such as name, email address, mobile number, Pan details, bank, and Demat details
- Then, confirm the quantity and price and select a payment method.
- That’s all folks, bidding is complete!!