Investment Opportunity: Edelweiss Finance NCD Offers 10.25% Per Annum

On Wednesday, Edelweiss Finance and Investments (EFIL) announced the public issue of secured redeemable non-convertible debentures (NCDs) at the issue price of Rs 1,000 each.

Issue Details

• The issue will be open for subscription from 23 January to 31 January 2020
• The NCD offers an effective yield of up to 10.25 percent per annum
• The face value of NCD is Rs 1,000.
• Tenures: 18 months, 36 months, 60 months and 120 months
• Interest option: monthly, annual and cumulative
• Ratings: CRISIL AA-/ Stable; CARE AA-/ Stable
• Depositories: NSDL and CDSL
• Registrar: Link Intime India Pvt Ltd
• To be listed on: BSE
• Allotment on first come first serve basis
• Minimum bid amount: Rs 10,000
• Lead managers to the issue: IDBI Capital Markets and Securities, Edelweiss Financial Services Ltd (EFSL)

How Is Income From NCDs Taxed?

EFIL is a wholly-owned subsidiary of EFSL. The company's product portfolio currently comprises of granting loans against securities, ESOP finance, margin trade financing and IPO financing.

The base issue size of the public issue is Rs 125 crore, with an option to retain over-subscription up to Rs 125 crore, aggregating to a total of Rs 250 crore.

The funds raised through the NCD issue will be primarily used for onward lending and repayment of interest and principal of the company's existing borrowings and for general corporate purposes.

The highest coupon rate of 10.25 percent is available on tenures of 60 and 120 months.