Edelweiss Financial Services Limited NCD 2022- Tranche 1
Edelweiss Financial Services Limited (“EFSL”), was incorporated on November 21, 1995 under the name Edelweiss Capital Limited and started operations as an investment banking firm after receipt of a Category II licence from SEBI.
They have a pan-India and international network with 237 domestic offices, and three international offices (total 240 offices) and employed 5,955 employees as at September 30, 2022, excluding EWM offices and employees.
They focus on six key vectors in their journey into the future – people management, cost management, risk management, technology, customer experience and innovation – while adhering to the business principles – which emphasise placing their clients’ interests first, commitment to excellence and innovation and teamwork.
Strengths
a) Diversified business model in which they have grown from a capital markets advisory business to a diversified financial services group engaged in businesses of credit, asset management, asset reconstruction, insurance and wealth management.
b) Pan-India distribution network
c) Adequately capitalised
d) Strong management and distinctive people and culture
Objective of NCD Edelweiss Financial Services Limited NCD 2022- Tranche 1:
(i) For the purpose of repayment /prepayment of interest and principal of existing borrowings of Company (At least 75%)
(ii) General Corporate Purposes* (Maximum upto 25%)
Letter of Offer
Edelweiss Financial Services Limited NCD 2022- Tranche 1 Details:
| Open Date: | Jan 03 2023 |
| Close Date: | Jan 11 2023 |
| Issue Size: | ₹ 400 Cr. |
| Face Value: | ₹ 1000 Per NCD |
| Market Lot: | 10 NCD |
| Minimum Order Quantity: | 10 NCD |
| Listing At: | BSE |
Promoters:
Rashesh Shah
Rashesh Shah is Chairman & Managing Director of the Edelweiss Group. He has diverse experience in the financial markets and has been instrumental in building Edelweiss into one of India’s leading diversified financial services organisation. He holds a post-graduate diploma in management from the Indian Institute of Management, Ahmedabad, and a post-graduate diploma in international trade from the Indian Institute of Foreign Trade.
Venkatchalam Ramaswamy
Venkatchalam Ramaswamy, is Vice Chairman & Executive Director on our Board. He has over three decades of experience in the financial markets. He is also a chairman of Edelweiss’s Asset Management Business and has oversight over Edelweiss Asset Reconstruction Company.
Financials:
Consolidated Figures in Rs. Crores
| Particulars | Mar-20 | Mar-21 | Mar-22 |
| Sales | 9544 | 10775 | 7243 |
| Other Mfr. Exp | 896 | 1700 | 1765 |
| Employee Cost | 1409 | 1617 | 1066 |
| Selling and admin | 1064 | 1070 | 1039 |
| Other Expenses | 3666 | 2222 | 169 |
| Other Income | 59 | 74 | 158 |
| Depreciation | 232 | 260 | 151 |
| Interest | 4793 | 3834 | 2984 |
| Profit before tax | -2457 | 146 | 227 |
| Tax | -413 | -108 | 15 |
| Net profit | -2045 | 265 | 189 |
Credit Rating:
The NCDs proposed to be issued under this Tranche I Issue have been rated “CRISIL AA-/Negative (pronounced as CRISIL double A minus rating with Negative outlook)” and “ACUITE AA-/Negative” (pronounced as ACUITE double A minus).
Interest Rates:
| Series | I | II | III | IV | V | VI | VII | VIII | IX | X |
| Interest Payment | Annual | Cumulative | Monthly | Annual | Cumulative | Monthly | Annual | Cumulative | Monthly | Annual |
| Minimum Application | Rs 10,000/- (10 NCDs) across all Series | |||||||||
| FV | Rs 1000/- | |||||||||
| In Multiples of thereafter | 1,000/- (1 NCD) | |||||||||
| Tenor | 24 M | 24 M | 36 M | 36 M | 36 M | 60 M | 60 M | 60M | 120 M | 120 M |
| Coupon (% per annum) | 9.00% | NA | 9.20% | 9.60% | NA | 9.67% | 10.10% | NA | 10.00% | 10.45% |
| Effective Yield | 8.99% | 9.00% | 9.59% | 9.59% | 9.60% | 10.10% | 10.09% | 10.10% | 10.46% | 10.44% |
| Amount on Maturity in Rs. | 1000 | 1188.4 | 1000 | 1000 | 1317 | 1000 | 1000 | 1618.3 | 1000 | 1000 |
Post Tax returns:
(i) Sold after Maturity The interest earned through NCDs will be added to the total income and will be taxed at 5%, 20%, and 30% respectively depending upon the income slab of an Individual.
(ii) Sold Before Maturity If you decide to sell the NCDs on the stock exchange, capital gains can also arise. If NCDs are sold within a period of 12 months from the date of allotment, short term capital gains/loss (STCG) will arise and if you decide to sell NCDs after a period of 12 months, the resulting gain or loss is called long term capital gains/loss (LTCG).
Lead Manager of Edelweiss Financial Services Limited NCD 2022- Tranche 1:
- Equirus Capital Private Limited
Registrar of Edelweiss Financial Services Limited NCD 2022- Tranche 1:
- Kfin Technology Private Limited
Discussion on Edelweiss Financial Services Limited NCD 2022- Tranche 1:
6 Comments
Leave a Reply
You must be logged in to post a comment.
For Listing Edelweiss find Script Code here –
https://d2un9pqbzgw43g.cloudfront.net/main/Annexure-1.pdf
Edelweiss Financial services latest subscription status
Non Institutional 2.09x
HNI 1.05x
Retail 1.97x
Total Subscription 1.42x
Edelweiss Financial Services Subscription at 11:30 pm (06/01/2023)
Institutional 0x
Non Institutional 1.19x
HNI 0.64X
Retail 1.23x
Total Subscription 0.87x
Edelweiss Financial Services Subscription at 12 pm ( 05/01/2023 )
Institutional 0x
Non Institutional 1.15x
HNI 0.50x
Retail 0.86x
Total Subscription 0.66x
Category Wise Subscription of NCD:
https://www.bseindia.com/markets/publicIssues/BSEcumu_demand.aspx?ID=2883
Ratings are not good