Edelweiss Financial Services Limited (EFSL) has once again come up with a public issue of secured, redeemable, non-convertible debentures (NCDs) in September-2025. The company is offering attractive coupon rates with monthly, annual, and cumulative options. Many investors look at Edelweiss NCD issues due to their higher yields compared to traditional fixed deposits. However, the question remains – should you invest in Edelweiss Financial Services NCD Sep-2025/Oct-2025 issue or avoid it?
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About Edelweiss Financial Services Limited
Edelweiss Financial Services Limited, incorporated in 1995, is a diversified financial services company headquartered in Mumbai. It is registered with SEBI as a Category I Merchant Banker and functions as the holding company of the Edelweiss Group. The company operates in credit (retail and wholesale lending), insurance (life and general), asset management (mutual funds and alternatives), and asset reconstruction businesses. Over the years, Edelweiss has built a strong market presence, though it also carries a relatively high debt profile.
NCD Issue Details
- Issuer: Edelweiss Financial Services Limited (EFSL)
- Issue Type: Secured, Redeemable, Non-Convertible Debentures (NCDs)
- Issue Size: ₹150 crore (base issue) with a green-shoe option up to ₹150 crore, totaling ₹300 crore
- Face Value: ₹1,000 per NCD
- Issue Price: ₹1,000 per NCD
- Minimum Investment: ₹10,000 (10 NCDs), thereafter in multiples of ₹1,000
- Market Lot / Trading Lot: 1 NCD
- Listing: BSE
- Mode of Allotment: Dematerialized form only
- Issue Opens: September 24, 2025
- Issue Closes: October 8, 2025 (may close earlier)
Interest Rates / Coupon Options
The company is offering multiple series with monthly, annual, and cumulative interest options. The coupon rates range between 9.40% and 10.05% depending on the series and tenure. The effective yield is slightly higher for cumulative options. (Investors should carefully check the specific series in the prospectus before applying.)
| Series | Tenure | Interest Payment | Coupon Rate (% p.a.) | Effective Yield (% p.a.) | Maturity Value (₹ per NCD) |
|---|---|---|---|---|---|
| I | 24 months | Annual | 9.00% | 9.00% | ₹1,000 |
| II | 24 months | Cumulative | NA | 9.00% | ₹1,188.10 |
| III | 36 months | Monthly | 9.12% | 9.51% | ₹1,000 |
| IV | 36 months | Annual | 9.50% | 9.49% | ₹1,000 |
| V | 36 months | Cumulative | NA | 9.50% | ₹1,313.30 |
| VI | 60 months | Monthly | 9.58% | 10.01% | ₹1,000 |
| VII | 60 months | Annual | 10.00% | 9.99% | ₹1,000 |
| VIII | 60 months | Cumulative | NA | 10.00% | ₹1,611.00 |
| IX | 120 months | Monthly | 9.80% | 10.24% | ₹1,000 |
| X | 120 months | Annual | 10.25% | 10.24% | ₹1,000 |
Credit Ratings
The NCDs have been rated Crisil A+/Stable by CRISIL Ratings Ltd.
- Instruments with this rating are considered to have an adequate degree of safety regarding timely servicing of financial obligations.
- However, they carry low credit risk, and ratings can be revised in the future.
Objects of the Issue
The company proposes to utilize the funds for the following purposes:
- Repayment / prepayment of interest and principal of existing borrowings.
- General corporate purposes.
Company Financials
- Total Debt: ₹30,724 crore as of March 2025 (₹29,677 crore in March 2024)
- Net Worth: ₹5,746 crore as of June 2025
- Debt to Equity Ratio: 0.56 (March 2025)
- Net Profit (FY25): ₹65.3 crore (compared to a loss of ₹51.9 crore in FY24)
- Interest Coverage Ratio: Improved to 1.80 in June 2025 from 0.84 in March 2025
While financials show improvement, the company continues to operate with high leverage and faces sectoral risks.
Why to Invest in Edelweiss NCD October 2025
- Attractive coupon rates up to 10.05%, higher than bank FDs.
- Secured NCDs backed by assets of the company.
- Diversified financial services group with presence across lending, insurance, asset management, and asset reconstruction.
- Improvement in FY25 financials and positive profitability compared to FY24 loss.
- Listing on BSE provides liquidity if investors wish to exit early.
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Why Not to Invest in Edelweiss NCD October 2025
- Moderate credit rating of Crisil A+/Stable – not in the high safety zone (AAA/AA).
- Company has a history of high leverage and volatile earnings.
- Exposure to stressed assets through its asset reconstruction business.
- Financial services sector remains vulnerable to economic downturns and rising NPAs.
- Past controversies and litigations may impact investor confidence.
- Investors can refer all risk factors from RHP filed with SEBI.
How to Apply
Investors can apply for these NCDs through:
- Online via Demat Account – using platforms like Zerodha, Upstox, ICICI Direct, HDFC Securities, etc.
- Offline – by submitting the application form through designated collection centers or with the help of brokers.
- UPI / ASBA – payment facility available for retail investors.
Conclusion – Should You Invest?
Edelweiss Financial Services NCD October 2025 issue offers attractive interest rates up to 10.05% with multiple interest payout options. The NCDs are secured and listed, adding some level of safety and liquidity. However, the A+ credit rating indicates moderate risk, and investors must remember that NCDs are not risk-free. The company continues to carry high debt, and its business is exposed to cyclical risks.
Conservative investors or those looking only for safe investments may avoid this issue. On the other hand, investors with a higher risk appetite who are comfortable with moderate credit-rated instruments can consider investing a small portion of their portfolio in this NCD for better returns.
FAQs
1. What is the issue size of Edelweiss Financial Services NCD October 2025?
The issue size is ₹150 crore with a green-shoe option up to ₹150 crore, aggregating up to ₹300 crore.
2. What is the credit rating of these NCDs?
The NCDs are rated Crisil A+/Stable, which indicates adequate safety but moderate credit risk.
3. What is the interest rate offered?
The coupon rates range from 9.40% to 10.05%, depending on the series and tenure chosen.
4. Are these NCDs secured?
Yes, these are secured NCDs backed by assets of the company.
5. Can I sell these NCDs before maturity?
Yes, they will be listed on BSE, providing an exit option before maturity. However, liquidity may depend on demand and supply.
6. How can I apply for Edelweiss NCD September / October 2025 issue?
You can apply online through your demat account or offline via application forms through brokers. UPI and ASBA facilities are also available for retail investors.
7. Who should invest in these NCDs?
Investors with a moderate to high risk appetite, looking for better returns than FDs, and comfortable with A+ rated instruments can consider them. Conservative investors should avoid.
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