Investors looking for fixed income options with relatively higher returns often explore Non-Convertible Debentures (NCDs). Edelweiss Financial Services has come up with its new NCD issue in April 2025. Should you invest in Edelweiss Financial Services NCD April 2025? What are the issue details, interest rates, and credit ratings? Let us review this NCD issue in detail.
About Edelweiss Financial Services Limited
Incorporated in November 1995, Edelweiss Financial Services Limited (EFSL), previously known as Edelweiss Capital Limited, is a Mumbai-based investment banking and financial services company. EFSL operates in various segments through its subsidiaries including retail and corporate credit, asset management (including mutual funds and alternate investment), insurance (life and general), asset reconstruction, and wealth management.
As of December 31, 2024, the Edelweiss Group comprises 27 subsidiaries, operates through 252 domestic offices and 3 international offices, and employs over 5,946 people. It is a publicly traded company listed on NSE (EDELWEISS) and BSE (532922).
Edelweiss Financial Services NCD April 2025 – Issue Details
- Issue Opens: April 8, 2025
- Issue Closes: April 24, 2025
- Security Name: Edelweiss Financial Services Limited
- Security Type: Secured, Redeemable, Non-Convertible Debentures (Secured NCDs)
- Issue Size (Base): ₹ 100 Crores
- Issue Size (Oversubscription): ₹ 100 Crores
- Total Issue Size: ₹ 200 Crores
- Face Value: ₹ 1,000 per NCD
- Issue Price: ₹ 1,000 per NCD
- Minimum Lot Size: 10 NCDs (₹ 10,000)
- Listing: BSE
- Credit Rating: CRISIL A+/Stable by CRISIL Ratings Limited
- Tenure Options: 24, 36, 60, and 120 months
- Interest Payment: Monthly and Annually
- Basis of Allotment: First Come First Serve
- Debenture Trustee: Beacon Trusteeship Limited
NCD Allocation Ratio
- Institutional – 10%
- Non-Institutional – 10%
- HNI – 40%
- Retail – 40%
Edelweiss Financial Services NCD April 2025 – Interest Rates
| Series | Interest Frequency | Tenor | Coupon (% p.a.) | Effective Yield (% p.a.) | Maturity Amount (₹) |
|---|---|---|---|---|---|
| Series 1 | Annual | 24 Months | 9.5% | 9.5% | ₹ 1,000 |
| Series 2 | NA | 24 Months | NA | 9.5% | ₹ 1,199.1 |
| Series 3 | Monthly | 36 Months | 9.57% | 10% | ₹ 1,000 |
| Series 4 | Annual | 36 Months | 10% | 9.99% | ₹ 1,000 |
| Series 5 | NA | 36 Months | NA | 10% | ₹ 1,331 |
| Series 6 | Monthly | 60 Months | 10.04% | 10.51% | ₹ 1,000 |
| Series 7 | Annual | 60 Months | 10.5% | 10.49% | ₹ 1,000 |
| Series 8 | NA | 60 Months | NA | 10.5% | ₹ 1,647.9 |
| Series 9 | Annual | 60 Months | 10.5% | 10.49% | ₹ 1,000 |
| Series 10 | Monthly | 120 Months | 10.49% | 11% | ₹ 1,000 |
| Series 11 | Annual | 120 Months | 11% | 10.99% | ₹ 1,000 |
| Series 12 | Annual | 120 Months | 11% | 10.99% | ₹ 1,000 |
Credit Ratings of NCDs
These NCDs are rated CRISIL A+/Stable. Instruments with this rating are considered to have adequate degree of safety regarding timely servicing of financial obligations. However, such instruments carry more credit risk compared to higher rated instruments.
Company Financial Performance
As per consolidated financials:
- FY 2023-24 Revenue: ₹ 9,601.58 Crores
- FY 2023-24 Profit After Tax: ₹ 673.94 Crores
- Assets as on March 31, 2024: ₹ 42,919.57 Crores
Objects of the Issue
The company proposes to use the proceeds from the NCD issue for:
- Repayment or prepayment of existing borrowings (principal and interest)
- General corporate purposes
Why to Invest in Edelweiss Financial Services NCD April 2025?
- Attractive interest rates up to 11% per annum
- Monthly and annual interest payout options available
- Secured NCDs – backed by company assets
- Allotment on first-come-first-serve basis – early applicants may get assured allotment
- CRISIL A+/Stable credit rating – indicates adequate safety
Why Not to Invest?
- Credit rating of A+ is lower compared to AAA-rated instruments – comes with moderate credit risk
- These NCDs are illiquid in nature – listing does not assure easy exit
- Long tenure NCDs (e.g., 120 months) may carry reinvestment and interest rate risks
- Company operates in segments like lending and asset reconstruction which are subject to market fluctuations
- Refer NCD prospectus for complete risk factors.
How to Apply for Edelweiss Financial Services NCD April 2025?
You can apply for these NCDs in demat mode only through your broker or trading account where you have your demat account. These are available under the debt segment of BSE. Applications can be made online or through ASBA supported bank accounts.
Should you invest in Edelweiss Financial Services NCD April 2025?
Edelweiss Financial Services NCDs offer up to 11% interest per annum, which is quite attractive in the current interest rate environment. These are secured NCDs and rated CRISIL A+/Stable. However, investors should also consider the credit rating, tenure risk, and illiquidity before investing.
High-risk appetite investors looking for fixed income options can consider investing in short to medium-term NCDs (like 24 or 36 months). Long-term options may be considered with caution.
FAQs on Edelweiss Financial Services NCD April 2025
- What is the issue open and close date of Edelweiss NCD April 2025?
The issue opens on April 8, 2025, and closes on April 24, 2025. - What is the minimum investment required?
The minimum investment is ₹ 10,000 (i.e., 10 NCDs). - What is the frequency of interest payments?
Investors can choose between monthly and annual interest payout options. - Is there any option for cumulative interest?
Yes, cumulative options are available in selected series. - What is the credit rating assigned to this NCD issue?
CRISIL has rated these NCDs as A+/Stable. - Are these NCDs listed on stock exchanges?
Yes, they are proposed to be listed on BSE. - Can I apply for Edelweiss NCDs in physical form?
The application is available only in demat form.
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Thanks Suresh garu for sharing another wonderful article. I tried to search for this NCD in Zerodha but could not find any details under Bids. Can you please guide how to purchase this in Zerodha. I found similar issue for IIFL NCD which you published. From HDFC Bank account also I could not find an option to buy via ASBA.
Thank you
Currently for new NCDs you cannot directly apply in Zerodha. You can use company website link directly and select Zerodha details.