Edelweiss Financial Services NCD Issue Opens : Subscribe or Skip?

Edelweiss Financial Services have come up with the 1st portion of their NCD (non-convertible debentures). This Edelweiss Financial Services NCD Issue portion is worth upto Rs 500 Crores. You can subscribe to this issue from 6th December 2021 up till 27th.

You can choose from 10 series of debentures. The tenure here starts from 2 years and goes uptil 10 years. The annual interest coupon offer is in between 8.75% to 9.70% i.e. the longer you invest, more are the returns. You can withdraw your money in monthly, annually, and cumulative patterns.

This Edelweiss Financial Services NCD Issue comes with a face value of Rs 1000. The minimum investment amount available is Rs 10,000. Make a note that a Demat Account is compulsory here as your investments & returns will be stored in this account only.

Here’s a quick summary of this Edelweiss Financial Services NCD Issue for a better view.

Edelweiss Financial Services has a diversified business spread across 10 of its associate companies. Its key work areas include the following.

• Lending

• Wealth Management

• Asset Management

• Capital Markets

• Insurance

• Asset Reconstruction

Checkout the pros & cons of this Edelweiss Financial Services NCD Issue to decide whether to subscribe or not.

• Better interest rates than fixed deposits.

• Profited in FY 2021.

• Growth in some business sectors.

• Regular income via debt allocation.

• Early exit possible.

• Rated AA- by CRISIL.

• Uncertain business industry (current status).

• Less margin businesses (capital markets, wealth / asset management) currently .

• Loss in Insurance business.

• Fall in net interest income for credit NBFCs since 2019.

• Net interest income for ECL Finance was Rs 13196M in FY19, but dropped to Rs 650M in FY21.

• Consolidated PAT dropped from Rs 10443M in FY19 to Rs 2539M.

• Proceeds from this issue to be used for repayment and financial obligations.

Therefore, you can go for the minimum tenure (2 yrs) if you are interested in investing in this issue, given the risk. You can invest upto 10% of your fixed income, but more than this might be a gamble. Here’s the Edelweiss Financial Services Limited Dec’21 NCD Issue link for subscription.

Will You Subscribe to this Edelweiss Financial Services NCD Issue? If yes then why? Do share your views and help other budding investors.