The Secured Redeemable Non-Convertible Debentures Public Issue (NCD IPO) by Edelweiss Financial Services Limited will run from July 4 to July 17, 2023.
For investors, this NCD Public Issue, which has a rating of AA- from CRISIL and ACUITE, offers a lucrative investment opportunity. In this blog, you will find in-depth details on the company, the issue, and its financial performance. The issue’s particulars are described below:
About the Company
Edelweiss Financial Services Limited (EFSL), a Mumbai-based investment banking company and merchant banker, was founded in 1995. Through its subsidiaries, Edelweiss is also active in a number of other industries, including credit (retail and corporate), wealth management, asset management, asset reconstruction, and insurance, including the life and general insurance industries.
With over 300 offices spread throughout 126 Indian towns and three international sites, the organization has a pan-Indian and global network of about 8,500 workers.
Issue Analysis
| Pros | Cons |
| 1. These NCDs are backed by the company’s assets, adding another level of security to your investment. 2. These securities are secured. 3. Compared to FD rates, the issuer provides high coupon rates. | 1. The influence of macroeconomic factors like COVID on the company has been unfavourable. These circumstances are, nevertheless, steadily getting better. 2. The corporation is anticipated to experience pressure as the quality of its assets and profitability decline. |
Ratio of Allocation
The allocation ratio is created using the standards established by SEBI. The SEBI must approve the allocation ratio before it may be made public. Applications will be sorted into categories after the IPO subscription period ends. The category-wise allocation percentage is always chosen and announced at the time the specific IPO is launched. Units will be allocated to applicants based on the Allocation Ratio. To learn the application ratio for the EFSL NCD-IPO, examine the chart.
Investor Categories
The various groups or sorts of investors who may participate in the offering are referred to as “investor categories” in a bond public issue. In order to distribute the available bonds among different investor sectors, these categories are often established by the issuer in accordance with the standards established by regulatory bodies like SEBI. The Edelweiss Public Issue’s category-by-category allocation ratio is shown below.
- Category I: 10% of the total issue size falls under Institutional Portion, which includes Public Financial Institutions, Insurance Companies, Scheduled Banks, Provident Funds, AIFs, etc.
- Category II: 10% of the total issue size belongs to Non-Institutional investors, which includes companies, cooperative banks, trusts, partnership firms, associations of persons, etc.
- Category III: Resident Indian persons or Hindu Undivided Families applying through the Karta for an amount of more than 10,00,000 for all choices of NCDs in the Issue fall under High Net-worth Individual Investors, who account for 40% of the issue’s total size.
- Category IV: Hindu Undivided Families or Resident Indian Individuals applying through Karta for an amount aggregating up to and including $10,000 are included in Retail, which accounts for 40% of the total issue size.
How do I Apply Through BondsIndia?
Apply quickly by using the procedures below:
- Select the series under Bond Public Issue.
- Fill up PAN and Demat account information
- Enter your UPI ID
- Approve the payment mandate.
Conclusion:
Investors can purchase secured redeemable non-convertible debentures through the Edelweiss Financial Services Limited Bond Public Issue (NCD IPO). Edelweiss Financial Services Limited seeks to draw in investors from various markets with a strong brand image, impressive financial results, and AA credit ratings. Before making an investment, those who are interested should carefully read the Information Memorandum and take their risk tolerance and financial goals into account.