January 7, 2025
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Edelweiss Financial Services NCD January 2025 Details & Guidance
NCD Issue Opens on 7 January 2025
NCD Issue Closes on 20 January 2025
# NCD Guidance is given at the bottom of the post
About the Company:
EFSLwas listed in December 2007. It has a pan-India and international network with 244(two hundred and forty four) domestic offices, and 3 (three) international offices (total 247offices) and employed 6,092employees as at December 31, 2023.
The total income of the Issuer was Rs. 1,08,488.50 million for the year March 31, 2021, Rs. 73,045.91 million for the year March 31, 2022, and Rs. 86,325.91 million for the year March 31, 2023, on a consolidated basis.
Its diversified business strategy has improved the resilience of its business model across economic cycles. It constantly pursue innovation and invest in new ideas, newer products and newer alternate channels of delivery.
Its principal business lines and major subsidiaries engaged in those business lines are as follows:
1. Alternative Asset Management
2. Mutual Fund
3. Asset Reconstruction
4. NBFC
5. Housing Finance
6. General Insurance
7. Life Insurance
Get more details about the company @ https://www.edelweissfin.com/
NCD Promoter:
The company’s promoters are Rashesh Shah, Mr. Venkatchalam Ramaswamy, Ms. Vidya Shah, and Ms. Aparna T.C.
NCD Rating
The NCDs proposed to be issued under this Issue have been rated CRISIL A+/Stable for an amount of Rs 10,000 million by CRISIL Ratings Limited.
| Edelweiss Financial Services NCD January 2025 Detail | |
| Issue Open | January 7, 2025 – January 20, 2025 |
| Security Name | Edelweiss Financial Services Limited |
| Security Type | Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) |
| Issue Size (Base) | Rs 100.00 Crores |
| Issue Size (Oversubscription) | Rs 100.00 Crores |
| Overall Issue Size | Rs 200.00 Crores |
| Issue Price | Rs 1000 per NCD |
| Face Value | Rs 1000 each NCD |
| Minimum Lot size | 10 NCD |
| Market Lot | 1 NCD |
| Listing At | BSE |
| Credit Rating | CRISIL A+/Watch Negative by CRISIL Ratings Limited. |
| Tenor | 24, 36, 60 and 120 Months |
| Series | Series I to XII |
| Payment Frequency | Monthly and Annually |
| Basis of Allotment | First Come First Serve Basis |
| Debenture Trustee/s | Beacon Trusteeship Limited |
| NCD Allocation Ratio | |
| Category | NCD’s Allocated |
| Institutional | 10% |
| Non-Institutional | 10% |
| HNI | 40% |
| Retail | 40% |
| Total | 100% |
| NCD’s Offered by Category | |
| Category | NCD’s Reserved |
| Institutional | 1,00,000 |
| Non-Institutional | 1,00,000 |
| Retail | 4,00,000 |
| Category 4 | 4,00,000 |
| Total NCD’s | 10,00,000 |
| Edelweiss Financial Services Limited NCD Coupon Rates | ||||||||||||
| Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 | Series 11 | Series 12 | |
| Frequency of Interest Payment | Annual | NA | Monthly | Annual | NA | Monthly | Annual | NA | Annual | Monthly | Annual | Annual |
| Nature | Secured | Secured | 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 | 60 Months | 120 Months | 120 Months | 120 Months |
| Coupon (% per Annum) | 9.50% | NA | 9.57% | 10% | NA | 10.04% | 10.50% | NA | 10.50% | 10.49% | 11% | 11% |
| Effective Yield (% per Annum) | 9.50% | 9.50% | 10% | 10% | 10% | 10.51% | 10.49% | 10.50% | 10.50% | 11% | 10.99% | 10.99% |
| Amount on Maturity (In Rs.) | Rs 1,000 | Rs 1,199.1 | Rs 1,000 | Rs 1,000 | Rs 1,331 | Rs 1,000 | Rs 1,000 | Rs 1,647.9 | Rs 1,000 | Rs 1,000 | Rs 1,000 | Rs 1,000 |
Edelweiss Financial Services NCD January 2025 Details & Guidance
Objects of the Issue
The company intends to utilize the net proceeds from the issue towards the funding of the following objects:
For repayment/prepayment of interest and principal of existing borrowings of the Company.
General corporate purposes.
.
Edelweiss Financial Services Financial Information (Restated)
| Company Financials | ||
| Edelweiss Financial Services Limited Financial Information (Restated Consolidated) | ||
| Period Ended | 03/31/’24 | 03/31/’23 |
| Assets | 42,919.57 | 44,064.27 |
| Revenue | 8,632.59 | 9,601.58 |
| Profit After Tax | 405.56 | 528.05 |
| Reserves and Surplus | 6,442.88 | 4,377.81 |
| Total Borrowing | 2,588.65 | 20,248.42 |
| Amount in Rs Crore | ||
Address of the Company
Edelweiss Financial Services Limited
Edelweiss House,
Off C.S.T.Road
Kalina, Mumbai-400098
NCD Lead Managers
Nuvama Wealth Management Limited
Trust Investment Advisors Private Limited
Tipsons Consultancy Services Pvt ltd
NCD Registrar
Kfin Technologies Limited
Edelweiss Financial Services NCD January 2025
Subscription Status on January 07, 2025
| Category | Subscription |
| Retail | 0.88 T |
| HNI | 0.7 T |
| Non-Institutional | 0.67 T |
| Institutional | 0.00 T |
| Total | 0.53 T |
Edelweiss Financial Services NCD January 2025
Edelweiss Financial Services NCD January 2025 Review by Paresh Gordhandas, CA & Research Analyst:
1. Frequent visitor to the NCD market. This is the 13th debt issue from the company since December 2020. The last debt offer from the company was in the month of October 2024.
2. Reasonably good profits and borrowing as compared to networth is at appropriate level.
3. NCD ratings have been changed. Now the NCDs proposed to be issued under the Issue have been rated CRISIL A+/Watch Negative (placed on ‘Rating Watch with Negative Implications’) for an amount of Rs 10,000 million by CRISIL Ratings Limited. Earlier for April 2024 NCD, it was The NCDs proposed to be issued under the said Issue had been rated CRISIL A+/Stable for an amount of Rs 10,000 million by CRISIL Ratings Limited.
The ratings given by the Credit Rating Agencies are valid as of the date of this Prospectus and shall remain valid until the ratings are revised or withdrawn. Securities with these ratings are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such securities carry low credit risk.
The rating is not a recommendation to buy, sell, or hold securities and investors should make their own decision. The rating may be subject to revision or withdrawal at any time by the assigning rating agency and each rating should be evaluated independently of any other rating. The rating agency has a right to suspend or withdraw the rating at any time on the basis of factors such as new information
4. Another important aspect is the company is spending Rs. 7.60 cr. for this debt offer and from the net proceeds, it will utilize at least 75% for the purpose of repayment/prepayment of existing borrowings with interest, and a maximum of up to 25% for general corporate purposes
5.For Half year of 2024-25 ended on September 30, 2024, it earned a net profit of Rs. 222.32 crore on a total income of Rs. 5178.83 crore.
Its Net NPA were at 1.65% as on September 30, 2024. against 1.28% as of March 31, 2024. Its debt/equity ratio of 3.14 as of September30, 2024, will increase to 3.17 post this issue. As of September 30, 2024, its AUMs stood at Rs. 197750 crores.
As on March 31, 2024, its Total Borrowings on a consolidated basis was Rs. 202,484.18 million and on standalone basis was ₹ 29,677.23 million. Our Total Borrowings on standalone basis was Rs. 29,165.75 million for the half-year period ended September 30, 2024. In order to meet these debt obligations, it will either need to refinance, which may prove to be difficult in the event of volatility in the credit markets, or alternatively, raise additional retained earnings or generate sufficient operating cash flows to retire the debt.
6. Its credit rating is a bit lower but to remain attractive it has hiked coupon rates. To earn higher interest income, calculated risk may be taken, and small portion of your fixed income portfolio may be invested in this NCD.
