Edelweiss Financial Services Limited (EFSL) is once again hitting the debt markets with its Non-Convertible Debenture (NCD) issue in July 2025. With interest rates ranging up to 10.45% per annum and tenures between 24 and 120 months, this public issue aims to attract retail and institutional investors looking for predictable fixed income. Should you invest in Edelweiss Financial NCDs July 2025 issue? Let us analyze its features, financials, and associated risks before concluding.
About Edelweiss Financial Services Limited
EFSL, incorporated in 1995, is a Mumbai-based financial services company engaged in providing credit, asset management, and insurance services. The company is part of the Edelweiss Group, which spans retail credit, wealth management, insurance, and asset reconstruction.
EFSL acts as the holding company for the group’s credit and investment businesses. Over the years, it has diversified from its initial focus on investment banking to becoming a broader financial services provider.
NCD Issue Details
- Issuer: Edelweiss Financial Services Limited
- Issue Opens: July 08, 2025
- Issue Closes: July 21, 2025
- Face Value: ₹ 1,000 per NCD
- Minimum Investment: ₹ 10,000 (10 NCDs)
- Issue Size: Base issue size of ₹ 150 Crores with an option to retain oversubscription up to ₹ 150 Crores, aggregating to ₹ 300 Crores
- Mode of Allotment: Dematerialized form only
- Listing: BSE
- Tenure: 24, 36, 60, and 120 months
- Interest Payment Options: Monthly, Annual, and Cumulative
- Security: Secured by a pari passu charge on company assets to ensure 100% security cover
Interest Rates Offered (Series-wise)
The highest yield offered is 10.45% per annum for 120 months cumulative option. Here are the interest rates:
|
# |
Series 1 | Series 2 | Series 3 | Series 4 | Series 5 | Series 6 | Series 7 | Series 8 | Series 9 | Series 10 | Series 11 | Series 12 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Frequency of Interest Payment | Annual | NA | Monthly | Annual | NA | Monthly | Annual | NA | Annual | Monthly | Annual | Annual |
| Nature | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured | Secured |
| Tenor | 24 Months | 24 Months | 36 Months | 36 Months | 36 Months | 60 Months | 60 Months | 60 Months | 60 Months | 120 Months | 120 Months | 120 Months |
| Coupon (% per Annum) | 9.00% | NA | 9.35% | 9.75% | NA | 9.80% | 10.25% | NA | 10.25% | 10.03% | 10.50% | 10.50% |
| Effective Yield (% per Annum) | 9.00% | 9.00% | 9.75% | 9.74% | 9.75% | 10.24% | 10.24% | 10.25% | 10.24% | 10.50% | 10.49% | 10.49% |
| Amount on Maturity (In ₹.) | ₹ 1,000.00 | ₹ 1,188.10 | ₹ 1,000.00 | ₹ 1,000.00 | ₹ 1,322.30 | ₹ 1,000.00 | ₹ 1,000.00 | ₹ 1,629.33 | ₹ 1,000.00 | ₹ 1,000.00 | ₹ 1,000.00 | ₹ 1,000.00 |
Credit Ratings
The NCDs are rated:
- CRISIL A+/Stable by CRISIL Ratings
This rating indicates that the instruments carry an adequate degree of safety regarding timely servicing of financial obligations and low credit risk. However, it’s one notch below the top-tier ‘AA’ category.
Objects of the Issue
The funds raised through this issue will be used for:
- Repayment/prepayment of existing borrowings
- General corporate purposes
Company Financials (Consolidated)
- FY2023: Revenue: ₹ 8,632 Cr, PAT: ₹ 405 Cr
- FY2024: Revenue: ₹ 9,601 Cr, PAT: ₹ 528 Cr
- FY2025: Revenue: ₹ 9,518 Cr, PAT: ₹ 535 Cr
Why to Invest?
- Attractive Yield: Effective yield up to 10.49% p.a.
- Monthly/Annual/Cumulative Options: Offers flexibility for all types of investors.
- Secured Issue: Backed by company assets with minimum 100% security cover.
- Listing on BSE: Offers liquidity option post allotment.
Why Not to Invest?
- Moderate Credit Rating: CRISIL A+ is decent, but below AA category.
- Past Issues: Edelweiss group had multiple debt issuances in recent years, leading to high leverage.
- Group Restructuring Impact: Some demergers and business realignments may impact clarity on future earnings.
How to Apply?
You can apply for these NCDs via:
- Demat-enabled trading accounts with brokers (e.g., Zerodha, ICICI Direct, etc.)
- Offline through forms via select brokers and banks
Ensure your PAN is linked to your Demat and KYC is updated. UPI option is available for applications up to ₹ 5 Lakhs.
Should You Invest?
Edelweiss Financial Services NCD July 2025 issue offers decent returns and is backed by adequate security cover. With yields up to 10.49% and flexible payment modes, it suits investors seeking predictable income. However, moderate credit rating and sector-specific risks should be considered. Moderate risk-takers can consider investing a small portion of their portfolio.
FAQs
- Is interest from Edelweiss NCD taxable?
Yes, interest is fully taxable as per the investor’s income tax slab. - Are these NCDs safe?
They are secured, but rated A+, not AAA. So, moderately safe. - Can I sell these NCDs before maturity?
Yes, they are listed on BSE, so can be traded subject to liquidity. - What happens on maturity?
You receive the face value (₹ 1,000 per NCD) plus cumulative interest (if any). - What is the risk of default?
A+ rating suggests low risk, but not entirely risk-free. Consider your risk appetite before investing. - Is TDS applicable?
TDS is not deducted on listed NCDs if held in Demat mode. - Minimum and Maximum investment?
Minimum investment is ₹ 10,000. There is no maximum limit for retail investors.
Disclaimer: This article is for information purposes only. Please consult your financial advisor before investing.
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Add a comment ↓Hi,
What is the difference between series 7 and series 9?