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Edelweiss Housing Finance NCD Oversubscribed By Retail And Institutional Buyers

Edelweiss Housing Finance had an initial issue size of Rs 150 crore with an option to increase it to Rs 300 crore in case of oversubscription. Read below to find out more about it

Edelweiss Housing Finance Limited (EHFL) stated on May 2 that its public offering of Secured Redeemable Non-Convertible Debentures (NCDs) had been completed successfully.

Edelweiss Housing Finance Limited (EHFL), on May 2 announced that its public issue of Secured Redeemable Non-Convertible Debentures (NCDs) has been successfully completed. 

They have allotted 2,759,057 NCDs of face value Rs 1,000 each, aggregating Rs 275.9057 crore.

According to a press release, the Edelweiss Housing Finance NCDs saw a significant demand from retail investors who collectively bought Rs 173.927 crore worth of NCDs. Besides them, corporate and institutional investors also bought them in good numbers.

“We are delighted with the encouraging response to our NCD issue. This is a demonstration of the faith that investors across categories have in our technology-powered business model and the appetite for high quality financial papers that offer competitive interest rates,” says Rajat Avasthi, managing director and CEO, Edelweiss Housing Finance Limited.

Issue Details

This issue by EHFL gives investors an option to choose from 10 series, with each one of them carrying a fixed coupon interest rate, and tenures ranging from 24, 36, 60 and 120 months with annual, monthly and cumulative interest payment options. 

Click here to read more about it

“The Issue has seen interest from investors across series and tenures offering annual, monthly and cumulative interest options, with the effective annual yield ranging from 8.49-9.69 per cent per annum,” the press release said. 

Equirus Capital Private Limited and Edelweiss Financial Services Limited are the lead managers to this Issue. 

Ratings Given To This Issue

Rating agency Crisil has rated these NCDs CRISIL AA-/Negative (pronounced as CRISIL double A minus rating with Negative outlook).

Rating agency Acuite has given these NCDs ACUITE AA/Negative (pronounced as ACUITE double A rating with Negative outlook).

Liquidity Option

Since these are fixed-term NCDs, they cannot be redeemed before the expiry of their tenure. But to provide a liquidity option, they will be listed on the Bombay Stock Exchange (BSE), where investors can sell them if needed. But investors should be wary of their traded price at the time of selling them, since their issue price and trading price could mismatch due to market conditions or other factors.

Click here to read more about how some sovereign gold bonds trade below their issue price on the NSE and the BSE

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