Edelweiss Financial NCD Tranche II: Everything you need to know

5 Apr 2023 , 09:34 AM

Edelweiss Financial Services Limited is a Mumbai-based investment banking firm. The company is involved in multiple businesses including credit (retail and corporate), wealth management, asset management, asset reconstruction, and insurance including life and general insurance businesses through its subsidiaries. It is coming up with a debt offer which is starting for subscription from April 06 to April 21, 2023. Click here to apply in the Edelweiss Financial NCD Tranche II. 

The company is raising Rs 200 crore from the issue at a price of Rs 1000 each. Investors need to apply for a minimum of 10 NCDs in a lot. The company has received rating of CRISIL AA-/Negative by CRISIL Ratings Limited and ACUITE AA-/ Negative by Acuité Ratings & Research Limited.

Edelweiss Financial Services Limited has reserved 10% quota for institutional investors, 10% for non-institutional investors, 40% for high net-worth investors and 40% for retail investors.

The company will use the net proceeds from the issue for repayment/prepayment of interest and principal of existing borrowings and other general corporate purposes.

These NCDs have tenures of 24 months, 36 months, 60 months and 120 months. It offers coupon rates from 8.95% to 10.45% based on the selection of investors. The frequency of interest payments will be Monthly, Annual or Cumulative as per the choice of investors. Allotment of these NCDs will be in dematerialized mode only. Application is to be made through ASBA mode only.

Check the coupon rates of NCDs of Edelweiss Financial Services Limited

	Series 1	Series 2	Series 3	Series 4	Series 5	Series 6	Series 7	Series 8	Series 9	Series 10
Frequency of Interest Payment	Annual	Cumulative	Monthly	Annual	Cumulative	Monthly	Annual	Cumulative	Monthly	Annual
Nature	Secured	Secured	Secured	Secured	Secured	Secured	Secured	Secured	Secured	Secured
Tenor	24 Months	24 Months	36 Months	36 Months	36 Months	60 Months	60 Months	60 Months	120 Months	120 Months
Coupon (% per Annum)	8.95%	NA	9.20%	9.60%	NA	9.67%	10.10%	NA	10.00%	10.45%
Effective Yield (% per Annum)	8.94%	8.95%	9.59%	9.59%	9.60%	10.10%	10.09%	10.10%	10.46%	10.44%
Amount on Maturity (In Rs.)	Rs 1,000.00	Rs 1,187.30	Rs 1,000.00	Rs 1,000.00	Rs 1,317.00	Rs 1,000.00	Rs 1,000.00	Rs 1,618.70	Rs 1,000.00	Rs 1,000.00

 

RHP:

https://www.sebi.gov.in/sebi_data/attachdocs/apr-2023/1680504634553.pdf

Tax implications:

• Interest on debentures received by resident debenture holders would be subject to tax at the normal rates of tax in accordance with and subject to the provisions of the I.T. Act.
• As per section 2(29AA) read with section 2(42A) of the I.T. Act, a listed debenture is treated as a longterm capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.
• As per section 2(42A) of the I.T. Act, a listed debenture is treated as a short-term capital asset if the same is held for not more than 12 months immediately preceding the date of its transfer.
• In case debentures are held as stock in trade, the income on transfer of debentures would be taxed as business income or loss in accordance with and subject to the provisions of the I.T. Act.
• Income tax is deductible at source on interest on debentures, payable to resident debenture holders at the time of credit/ payment as per the provisions of section 193 of the I.T. Act.

Edelweiss Financial Services Limited NCD is managed by Equirus Capital Private Limited. KFin Technologies Limited is the registrar of NCD and Beacon Trusteeship Limited is debenture trustee to the same.