Edelweiss Financial Services NCD: Details you must know

10 Oct 2024 , 01:07 PM

Founded in November 1995, Edelweiss Financial Services Limited (EFSL), previously known as Edelweiss Capital Limited, is an investment banking and merchant banking firm based in Mumbai. The company boasts a strong presence both nationally and internationally, with 251 offices across India and 3 offices overseas, employing over 5,889 staff members.

Edelweiss offers a range of services, including retail and corporate credit, asset management (covering mutual funds and alternative investments), asset reconstruction, insurance (both life and general), and wealth management, all provided through its various subsidiaries. As of June 30, 2024, the Edelweiss Group includes 27 subsidiaries.

The company has launched its debt offer, and the subscription period for this offer will be from October 10 to October 18, 2024. Click here to apply in the Edelweiss Financial Services 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+/Watch Negative by CRISIL Ratings Limited.

The company will use the net proceeds towards onward lending, financing, and repayment of interest and principal of existing borrowings of the company and other general corporate purposes.

Edelweiss Financial Services has allotted 10% each to Institutional and non-institutional investors. HNI and Retail investors have allotted 40% of the offer.

These NCDs have tenures of 24, 36, 60, and 120 Months. It offers coupon rates from 9.5% to 10.99% 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:

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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)

9.5%

NA

9.57%

10%

NA

10.04%

10.5%

NA

10.5%

10.49%

11%

11%

Effective Yield (% per Annum)

9.5%

9.5%

10%

10%

10%

10.51%

10.49%

10.5%

10.5%

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

 

RHP:

https://www.sebi.gov.in/sebi_data/attachdocs/oct-2024/1727776832469.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 NCD is managed by Trust Investment Advisors, Tipsons Consultancy Services and Nuvama Wealth Management Limited. KFin Technologies Limited is the registrar of NCD and Beacon Trusteeship Limited is the debenture trustee to the same.