Edelweiss Broking to raise up to Rs 300 crore via NCDs

New Delhi: Edelweiss Broking on Tuesday announced a public issue of secured redeemable non-convertible debentures (NCDs) of face value of Rs 1,000 each with a base size of Rs 150 crore.

The brokerage said the NCD issue will have an option to retain an oversubscription of up to Rs 150 crore, aggregating up to Rs 300 crore.

The issue, which opened on Tuesday, will close on July 26, with an option of early closure. The NCDs are proposed to be listed on BSE to provide liquidity to investors.

At least 90 per cent of the net proceeds will be used for the working capital purposes and the balance of the net proceeds is proposed to be utilised for general corporate purposes, according to Edelweiss.

The NCDs carry fixed coupons ranging from 8.75 per cent to 9.95 per cent per annum and have four tenors 24 months, 36 months, 60 months and 120 months, with various interest payment options like monthly, annual and cumulative.

The additional incentive will be a maximum of 0.20 per cent per annum for all categories of investors in the proposed issue, who are also holders of NCDs, bonds, previously issued by the company and/or ECL Finance, Edelweiss Financial Services, Edelweiss Housing Finance, Edelweiss Retail Finance and Edelweiss Finance & Investments and equity shareholders of Edelweiss Financial Services.

Equirus Capital and Edelweiss Financial Services are the lead managers to the issue.