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Edelweiss Financial Services Limited NCD: Details you need to know

9 Apr 2024 , 11:33 AM

Established in November 1995, Edelweiss Financial Services Limited (EFSL) stands as a prominent investment banking firm and Merchant Banker headquartered in Mumbai.

Edelweiss offers a wide range of financial services encompassing retail and corporate credit, asset management (including mutual funds and alternative asset management), asset reconstruction, life and general insurance, as well as wealth management through its various subsidiaries. As of June 30, 2023, the Edelweiss Group consists of 28 subsidiaries.

The company boasts an extensive presence both within India and internationally, boasting a network of 242 domestic offices and 3 international offices. With a dedicated workforce exceeding 6,062 employees as of June 30, 2023, Edelweiss is committed to providing comprehensive financial solutions to its clients.

The company is launching debt offer, and the subscription period for this offer will be from April 08 to April 23, 2024. Click here to apply in the Edelweiss Financial Services Limited NCD.

The company is raising ₹100 Crore from the issue at a price of ₹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.

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 9.00% 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

Series 11

Series 12

Frequency of Interest Payment

Annual

Monthly

Annual

Monthly

Annual

Monthly

Annual

Nature

Secured

Tenor

24 Months

36 Months

60 Months

120 Months

Coupon (% per Annum)

9.00%

9.20%

9.60%

9.67%

10.10%

10.00%

10.45%

Effective Yield (% per Annum)

9.00%

9.60%

10.10%

10.09%

10.10%

10.46%

10.44%

Amount on Maturity (In Rs.)

₹1,000.00

₹1,188.20

₹1,000.00

₹1,316.71

₹1,000.00

₹1,618.60

₹1,000.00

RHP:

https://www.sebi.gov.in/sebi_data/attachdocs/apr-2024/1712036791958.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 the debenture trustee to the same.

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