Courtesy: https://www.chittorgarh.com/
Review By Dilip Davda on July 5, 2025
- This is the 15th debt issue from the company since December 2020.
• The last debt offer from the company was in the month of April 2025.
• The rating for this issue is maintained at A+/ Stable by CRISIL.
• The company has reduced coupon rates to 9.00% to 10.50%.
• Well-informed Investors may park moderate funds for the medium term.ABOUT COMPANY:
Edelweiss Financial Services Ltd. (EFSL) – erstwhile known as Edelweiss Capital Ltd. commenced its business as an investment banking firm, it diversified through its subsidiaries to include credit including retail and corporate credit, asset management including mutual fund and alternative asset management business, asset reconstruction, insurance both life and general insurance business, and wealth management business.
It has a pan-India and international network with 252 (two hundred and fifty-two) domestic offices, and 3 (three) international offices (total 255 offices) and employed 5,612 as at March 31, 2025.
Edelweiss group today enjoys a strong brand franchise in the financial services space backed by a reputation for consistent focus on execution and innovation. It has sought to carve a distinct brand identity which, help it to increase awareness and consideration amongst customers.
ISSUE DETAILS:
The company has emerged as the frequent debt market visitor and is now coming out with its 15th NCD issue since December 2020. The company will issue 3000000 Secured Redeemable NCDs having a face value of Rs. 1000 each for an amount of Rs. 150 cr. with a green shoe option of retaining oversubscription up to Rs. 150 cr., thus making an overall issue size of Rs. 300 cr. The issue opens for subscription on July 08, 2025, and will close on or before July 21, 2025.
For this issue, the merchant bankers are Trust Investment Advisors Pvt. Ltd., Nuvama Wealth Management Ltd. (erstwhile known as Edelweiss Securities Ltd.), and Tipsons Consultancy Services Pvt. Ltd., while KFin Technologies Ltd. is the registrar of the issue. Beacon Trusteeship Ltd. is the Debenture Trustee.
The company is spending Rs. 10.48 cr. for this debt offer and from the net proceeds, it will utilize at least 75% for the purpose of repayment/prepayment of existing borrowings with interest, and a maximum of up to 25% for general corporate purposes. A minimum application is to be made for 10 NCDs (i.e., Rs. 10000) and in multiple of 1 NCD (i.e., Rs. 1000) thereon, thereafter. Post allotment, NCDs will be listed on BSE.
This debt issue carries coupon rates ranging between 9.00% to 10.50% based on the series opted by the investors. It has tenors of 24 months, 36 months, 60 months, and 120 months. Frequency of interest payment will be either Monthly, Annually or Cumulative as per the selection of series by the investors. The company has allocated 10% for Institutional investors, 10% for non-institutional investors, 40% for HNIs and 40% for Retail investors.
ISSUE RATINGS:
This issue is rated CRISIL A+/ Stable by CRISIL Ratings Ltd. The ratings given by the Credit Rating Agencies are valid as of the date of this Prospectus and shall remain valid until the ratings are revised or withdrawn. Securities with these ratings are considered to have adequate degree of safety regarding timely servicing of financial obligations. Such securities carry low credit risk.
The rating is not a recommendation to buy, sell, or hold securities and investors should make their own decision. The rating may be subject to revision or withdrawal at any time by the assigning rating agency and each rating should be evaluated independently of any other rating. The rating agency has a right to suspend or withdraw the rating at any time on the basis of factors such as new information.
FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, EFSL has posted a total income of Rs. 7212.59 cr. / Rs. 212.07 cr. (FY22), and Rs. 8632.59 cr. / Rs. 405.56 cr. (FY23), and Rs. 9601.58 cr. / Rs. 528.05 cr. (FY24) Rs. 9518.71 cr. / Rs.535.82 cr. (FY25). It suffered a setback for FY22 in line with the general trends following the Pandemic. But a setback for FY25 has surprised one and all.
Its Net NPA were at 1.70% as on March 31, 2025, against 1.29% as of March 31, 2024. Its debt/equity ratio of 3.02 as of March 31, 2025, will increase to 3.07 post this issue. As of March 31, 2025, its paid-up equity capital of Rs. 92.14 cr. was supported by other equity worth Rs. 4332.59 cr.
Conclusion / Investment Strategy
This is the 15th debt issue from the company since December 2020. The last debt offer from the company was in the month of April 2025. The rating for this issue is maintained at A+/ Stable by CRISIL. The company has reduced coupon rates to 9.00% to 10.50%. Well-informed Investors may park moderate funds for the medium term.
Review By Dilip Davda on July 5, 2025
Review Author
DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. My reviews do not cover GMP market and operators game plans. Readers must consult a qualified financial advisor before making any actual investment decisions, based the on information published here. With entry barriers, SEBI wants only well-informed investors to participate in such offers. With crazy listings in the recent past, SME IPOs drew the attention of investors across the board and lead to seer madness. However, as SME issues have entry barriers and continued low preference from the broking community, any reader taking decisions based on any information published here does so entirely at their own risk. The above information is based on information available as of date coupled with market perceptions. The Author has no plans to invest in this offer.
About Dilip Davda
Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detailed fundamental and financial analysis of companies coming up with IPOs helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
(Dilip Davda -SEBI registered Research Analyst-Mumbai,
Registration no. INH000003127 (Perpetual)
Email id: dilip_davda@rediffmail.com ).
Courtesy: https://www.chittorgarh.com/
