ECL Finance Ltd (ECLF), the NBFC arm of Edelweiss Financial Services Limited, today announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs. 1,000 each, aggregating to Rs. 5,000 million, with an option to retain over-subscription up to Rs. 15,000 million aggregating to a total of Rs. 20,000 million (Rs. 2000 crores).
The NCDs offer an interest rate of 9.45% p.a. for 36 months tenure, 9.65% p.a. for 60 months tenure and 9.85% for 10 years tenure. Further, there is also a floating rate option which is linked to the overnight Mumbai Inter-Bank Offer Rate (MIBOR). Under this option, investors can earn the average annualized overnight MIBOR + 2.5% p.a. for 3 years. (Please refer to the Offer Documents for more details).
CRISIL has rated the offering "CRISIL AA/Stable" and ICRA has given it a "ICRA AA (Stable)" indicating that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk.
Total income and profit after tax (PAT) of ECL Finance Ltd. for the financial year ended March 31, 2018 was Rs. 30,600.27 million and Rs. 4,620.47 million, respectively. Over four years the Company's income from operations witnessed a CAGR of 39.32 % to Rs. 30,600.27 million in FY2018, PAT witnessed a CAGR of 30.35 % to Rs. 4,620.47 million in FY 2018 and the loan book of the Company has witnessed a CAGR of 37.84% to Rs. 220,081.23 million in FY2018.
The funds raised through this Issue will be used for onward lending purposes, for refinancing the existing borrowing and general corporate purposes.
Axis Bank Ltd and Edelweiss Financial Services Limited are the lead managers for this NCD Issue. The issue opens on July 24, 2018 and closes on August 16, 2018 with an option of early closure**. The NCDs will be listed on BSE Limited and National Stock Exchange of India Limited to provide liquidity to the investors.
**The subscription list for the Issue shall remain open for subscription upto 5 p.m. on all working days, with an option for early closure or extension by such period, as may be decided at the discretion of the duly authorized committee of Directors of our company subject to necessary approvals, if any. In the event of such early closure of the Issue or extension of the Issue, our Company shall ensure that notice of such early closure or extension of the Issue is given as the case may be on such date of closure through advertisement/s in a leading national daily newspaper with wide circulation on or before such earlier or initial date of Issue closure.
Shares of Edelweiss Financial Services Ltd. was last trading in BSE at Rs.287 as compared to the previous close of Rs. 290.05. The total number of shares traded during the day was 4698762 in over 4987 trades.
The stock hit an intraday high of Rs. 294.5 and intraday low of 282.5. The net turnover during the day was Rs. 1367063282.