The NCD issue that plans to mobilize a capital of Rs. 250 crore with an option to retain over-subscription of upto Rs. 250 crore aggregating to a maximum of Rs. 250 crore will remain open until January 27, 2014 with an option of early close.
The proposed issue of secured redeemable NCDs with a face value of Rs. 1000 for each of the bond will be available for different maturity terms from 3-5 years. The major portion of the issue i.e. 60% is earmarked for subscription by retail investors including high-net worth individuals (HNIs) and the remaining can be subscribed by qualified institutional buyers (QIBs) and corporates with an investment of 20% each.
Lead managers of the NCD issue are Axis Capital Limited, ICICI Securities Limited and Edelweiss Financial Services Limited. The NCDs will be listed on BSE.
Pre-tax coupon rate:
The secured NCDs will fetch a pre-tax coupon rate of 11.60%-11.85% to all investor categories. Indian employees of the company together with resident shareholders of Edelweiss shall be entitled to an additional coupon rate of 0.25%.
With a high pre-tax return, investors can bet on the NCD issue and diversify their investment portfolio.
Commenting on the high returns from the investment option, Rashesh Shah-Chairman and CEO of Edelweiss Financial Services Ltd. is quoted in one of the media reports saying " A large chunk of savings are either being held in low-yielding bank deposits or being channelized into non-financial assets like real estate and gold. Our latest NCD, with its attractive returns offers an opportunity for retail investors to make better investments".
Credit Analysis & Research Limited (CARE), the rating agency has accorded a 'CARE AA' (Double A) rating to the Edelweiss NCD issue.