Non-convertible debentures (NCDs) have become an attractive investment vehicle for those seeking fixed income. of Edelweiss Financial Services NCD December 2024 The issue, launched by Edelweiss Financial Services Limited (EFSL), aims to raise up to Rs 200 crore with a base size of Rs 100 crore and an additional green shoe option.
Also read: Check the latest post office interest rates (January to March 2025)
About Edelweiss Financial Services
Founded in 1995, Edelweiss Financial Services Limited is India’s leading financial services group. The company operates in various areas such as credit, wealth management, and insurance. Headquartered in Mumbai, EFSL has built a strong reputation for providing innovative financial solutions.
Edelweiss Financial Services NCD December 2024 – Issue Details
| Issues in issue | January 7, 2025 – January 20, 2025 |
| security name | Edelweiss Financial Services Limited |
| Type of security | Secured, redeemable, non-convertible debentures (Secured NCDs) |
| Publication size (base) | 100 million rupees |
| Publication size (oversubscription) | 100 million rupees |
| Overall publication size | 200 million rupees |
| Issue price | 1000 rupees per NCD |
| face value | Each NCD 1000 rupees |
| minimum lot size | 10NCD |
| market lot | 1NCD |
| Exhibition location | BSE |
| credit rating | CRISIL A+/Watch Negative by CRISIL Ratings Limited. |
| tenor | 24, 36, 60, 120 months |
| series | Series I-XII |
| payment frequency | monthly and yearly |
| Basis for allocation | First come first served |
| bond trustee | BEACON TRUSTEESHIP LIMITED. |
interest rate and term
| detail | I | II | Ⅲ | Ⅳ | V | VI | VII | VIII | IX | × | XI | XII |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest payment frequency | yearly | N.A. | monthly | yearly | N.A. | monthly | yearly | N.A. | yearly | monthly | yearly | yearly |
| nature | safe | safe | safe | safe | safe | safe | safe | safe | safe | safe | safe | safe |
| 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 year) | 9.5% | N.A. | 9.57% | 10% | N.A. | 10.04% | 10.5% | N.A. | 10.5% | 10.49% | 11% | 11% |
| Effective yield (%/year) | 9.5% | 9.5% | 10% | 10% | 10% | 10.51% | 10.49% | 10.5% | 10.5% | 11% | 10.99% | 10.99% |
| Amount at maturity (Rs.) | 1,000 rupees | 1,199.1 rupees | 1,000 rupees | 1,000 rupees | 1,331 rupees | 1,000 rupees | 1,000 rupees | 1,647.9 rupees | 1,000 rupees | 1,000 rupees | 1,000 rupees | 1,000 rupees |
credit rating
NCDs have been assigned the following credit ratings: Crisil A+/Negative By CRISIL Ratings Limited. This shows that there is sufficient security regarding the timely repayment of financial obligations, but also highlights the potential risks[5†出典].
Financial soundness of Edelweiss Financial Services
| Period ended (Rs. billion) | March 31, 2024 | March 31, 2023 |
|---|---|---|
| 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 loan amount | 2,588.65 | 20,248.42 |
Why invest in Edelweiss Financial Services NCD December 2024
- attractive return:Higher yield than traditional fixed deposits.
- safe nature: These NCDs are backed by appropriate collateral, providing an additional layer of security.
- regular income: Flexible interest payment schedule to meet the needs of various investors.
- Listing benefits: Listing on BSE provides liquidity and allows investors to trade in the secondary market.
risk factors
- credit risk: Despite an ‘A+’ rating, a ‘Negative’ outlook indicates potential vulnerability.
- market risk: Changes in interest rates can affect the value of NCDs.
- liquidity risk: While listed, the trading volume of such NCDs may fluctuate, impacting their liquidity.
- Company-specific risks: A deterioration in EFSL’s financial condition could affect its ability to meet its obligations.
How can I invest in Edelweiss Financial Services NCD December 2024?
- Application process:
- Individual investors can apply through the ASBA (Application Supported by Blocked Amount) process.
- Applications can be made via physical form at a designated collection location or online through a participating broker.
- demat account: A demat account is required to hold these securities.
- Minimum investment amount: Usually starts at ₹10,000 and increases in multiples of ₹1,000.
Also read: Emergency Fund – How can I create, manage and invest in the best investment options?
Edelweiss Financial Services NCD December 2024 – Should you invest?
Edelweiss Financial Services NCD offers a combination of attractive returns and moderate risk. While safety and competitive coupon rates are attractive, investors should carefully reassess their credit rating prospects and their own risk appetite.
If you are aiming for higher yields over the medium term and can tolerate the associated risks discussed above, these NCDs may be a good addition to your investment portfolio. However, conservative investors may prefer other options such as government bonds or highly rated corporate FDs.
