Edelweiss Financial Services Limited NCD opens today: Key details to know

3 Jan 2023 , 09:34 AM

Investment banking firm Edelweiss Financial Services Limited has diversified its operations widely. Its subsidiaries offer various services like credit facilities including retail and corporate credit, asset management including mutual fund and alternatives asset management businesses, asset reconstruction, insurance for both life and general insurance business, and wealth management businesses. The company is coming up with a debt offer which is starting for subscription from January 03 to January 23, 2023. Click here to apply in the Edelweiss Financial Services Limited NCD. 

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 for NCDs.

Edelweiss Financial Services 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 of existing borrowings and other corporate purposes.

These NCDs have tenures of 24 months, 36 months, 60 months, and 120 months. It offers coupon rates from 9.00% to 10.00% 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
Tenor	24 months	24 months	36 months	36 months	36 months	60 months	60 months	60 months	120 months	120 months
Coupon Rate (Retail)	9.00%	NA	9.20%	9.60%	NA	9.67%	10.10%	NA	10.00%	10.45%
Effective Yield (% per Annum)	8.99%	9.00%	9.59%	9.59%	9.60%	10.10%	10.09%	10.10%	10.46%	10.44%
Amount on Maturity	Rs 1,000	Rs 1,188.40	Rs 1,000	Rs 1,000	Rs 1,317.00	Rs 1,000	Rs 1,000	Rs 1,618.30	Rs 1,000	Rs 1,000

 

RHP:

https://www.bseindia.com/markets/publicIssues/DisplayIPO.aspx?id=2883&type=DPI&idtype=1&status=L&IPONo=5996&startdt=03/Jan/2023

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.

On the financial performance front, for the last three fiscals, EFSL has (on a consolidated basis) posted net profits (loss) of Rs. (-2043.77) crore (FY20), Rs. 253.92 crore (FY21) and Rs. 212.07 crore (FY22). Thus it has posted inconsistency in its top and bottom lines.

The issue is solely lead managed by Equiras Capital Pvt Ltd. while KFin Technologies Limited is the registrar of the issue and Beacon Trusteeship Limited is the debenture trustee.