Edelweiss Financial Services Limited NCD: Details you need to know

3 Jan 2024 , 01:54 PM

Established in November 1995, Edelweiss Financial Services Limited (EFSL) operates as an investment banking firm and Merchant Banker with its headquarters in Mumbai.

Edelweiss specializes in providing retail and corporate credit, asset management (including mutual funds and alternative asset management), asset reconstruction, and insurance services (both life and general insurance), along with wealth management services through its various subsidiaries. The Edelweiss Group is composed of 28 subsidiaries as of June 30, 2023.

With a comprehensive network, Edelweiss has a pan-India and international presence, boasting 242 domestic offices and 3 international offices. The company is supported by a dedicated workforce of over 6,062 employees as of June 30, 2023.

The company is launching debt offer, and the subscription period for this offer will be from January 09 to January 22, 2023. Click here to apply in the Edelweiss Financial Services Limited NCD. 

The company is raising Rs 125 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 A+/Stable” by CRISIL Ratings Limited and “[ICRA]A+ (Stable)” by ICRA Limited.

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

Edelweiss Financial Services has allotted 40% each to HNI and retail investors. Non-institutional and institutional investors’ has also allotted 10% of the offer. 

These NCDs have tenures of 24, 36, 60 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 annually or monthly. 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	NA	Monthly	Annual	NA	Monthly	Annual	NA	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/jan-2024/1704171700950.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 is managed by Trust Investment Advisors and Nuvama Wealth Management Limited. KFin Technologies Limited is the registrar of NCD and Beacon Trusteeship Limited is debenture trustee to the same.