Latest News | Edelweiss Financial Services Mulls to Raise Up to Rs 400 Crore Th'

New Delhi, Sep 28 (PTI) Edelweiss Financial Services (EFSL) mulls raising up to Rs 400 crore through a public issue of bonds which opens next week.

The base issue size is Rs 200 crore with an option to retain oversubscription up to Rs 200 crore.

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Under the issue, the company will issue secured redeemable non-convertible debentures (NCDs) of the face value of Rs 1,000 each.

The effective annual yield for NCDs ranges from 8.84 per cent to 10.09 per cent, EFSL said in a release on Wednesday.

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The bonds will have tenures of 24 months, 36 months, 60 months and 120 months with annual, monthly and cumulative interest options.

The issue opens on October 3 and closes on October 17, 2022, with an option of early closure.

The NCDs will be listed on BSE to provide liquidity to investors, EFSL added.

The financial services firm said it will utilise at least 75 per cent of the funds raised through this issue for repayment /prepayment of interest and principal of existing borrowings of the company.

The balance is proposed to be utilised for general corporate purposes, subject to the condition that it will not exceed 25 per cent of the amount raised in the issue, according to the company.

Besides, the existing bondholders of the company and its group companies will get an additional benefit of 0.20 per cent per annum on the coupon rate.

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)