Edelweiss Housing Finance Limited announces Public Issue of Secured Redeemable Non-Convertible
Edelweiss Housing Finance Limited announces Public Issue of Secured Redeemable Non-Convertible Debentures (NCDs) amounting to ₹ 3,000 million
➢ Effective Yield of up to 9.70% per annum*
➢ Credit Rating: “CRISIL AA-/Negative (pronounced as CRISIL double A minus rating with Negative outlook)” and “ACUITE AA/Negative” (pronounced as ACUITE double A rating with Negative outlook)
➢ Trading in dematerialized form only
➢ Allotment on date priority basis i.e. on first -come- first-serve-basis, based on the date of upload of each application into the electronic system of the Stock Exchange, in each Portion subject to the Allocation Ratio.
Mumbai, March 31, 2022: Edelweiss Housing Finance Limited (EHFL), today announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of ₹1,000 each, amounting to ₹ 1,500 million (“Base Issue”), with an option to retain over-subscription up to ₹ 1,500 million aggregating to a total of ₹ 3,000 million (“Issue”). There are ten series of NCDs carrying fixed coupon and having tenure of 24 months, 36 months, 60 months and 120 months with annual, monthly and cumulative interest option. Coupon for NCDs ranges from 8.50% to 9.70% per annum*.
At least 75% of the funds raised through this Issue will be used for the purpose of onward lending, financing, and for repayment/ prepayment of interest and principal of existing borrowings of the Company and the balance is proposed to be utilized for general corporate purposes, subject to such utilization not exceeding 25% of the amount raised in the Issue, in compliance with the Securities and Exchange Board of India (Issue and Listing of Non-Convertible Securities) Regulations, 2021 (“SEBI NCS Regulations”).
The additional incentive will be maximum of 0.20% p.a. for all Category of Investors in the proposed Issue, who are also holders of NCD(s)/Bond(s) previously issued by our Company, and/ or ECL Finance Limited, Edelweiss Financial Services Limited, Edelweiss Retail Finance Limited and Edelweiss Finance & Investments Limited as the case may be, and/or are equity shareholder(s) of Edelweiss Financial Services Limited as the case may be, on the deemed date of allotment.
The NCDs proposed to be issued under this Issue have been rated “CRISIL AA-/Negative (pronounced as CRISIL double A minus rating with Negative outlook)” and “ACUITE AA/Negative” (pronounced as ACUITE double A rating with Negative outlook).The Issue opens on April 6, 2022 and closes on April 26, 2022 with an option of early closure**. The NCDs will be listed on BSE Limited to provide liquidity to the investors.
Equirus Capital Private Limited and Edelweiss Financial Services Limited*** are the Lead Manager to this Issue.
***Edelweiss Financial Services Limited is deemed to be the associate as per the Securities and Exchange Board of India (Merchant Bankers) Regulations, 1992, as amended (Merchant Bankers Regulations). Further, in compliance with the provisions of Regulation 21A and explanation to Regulation 21A of the Merchant Bankers Regulations, Edelweiss Financial Services Limited would be involved only in marketing of the Issue and as per Regulation 25 (3) of SEBI NCS Regulations.
About Edelweiss Housing Finance Limited:
Edelweiss Housing Finance Limited (“EHFL” / “the Company”) is a non-deposit taking Housing Finance Company focused on offering secured loan products to suit the needs of the individuals, including small ticket unsecured loans to customers from mainly rural areas, and corporates. It is a part of Edelweiss group which is one of the leading diversified financial services groups in India.
The Company offers customers a range of mortgage-related loan products, including:
- Home Loans, which includes offering secured loans to salaried individuals, self-employed individuals, and others for purchase/ construction/ renovation of residential properties, against mortgage of the same property.
- Non-Housing Loans including loan against property (LAP), which includes offering loans for business purposes or for the purchase of commercial property or for investment in asset, against mortgage of the same property.
- Construction Finance, which includes offering loans to reputed developers for construction of residential projects, against mortgage of the same property and/or other collateral.
As on December 31, 2021, the Company has 68 offices in 67 cities in India. Over the past several years, it has div ersified and expanded its presence into markets that are of greater relevance to the products that it offers. Its offices aim at providing quick and seamless customer experience with emphasis on a single window interface for the customer. The branch operations have significant technology architecture to ensure industry leading customer experience. Its operations are supported by 554 employees as on December 31, 2021.
*For further details refer to section titled “Issue Related Information” on page 308 of the Prospectus dated March 29, 2022. Allotment in the public issue of debt securities should be made on the basis of date of upload of each application into the electronic book of the stock exchange. However, on the date of oversubscription, the allo tment should be made to the applicants on proportionate basis.
** The Issue shall remain open for subscription on Working Days from 10 a.m. to 5 p.m. (Indian Standard Time) during the period indicated in the Prospectus, except that the Issue may close on such earlier date or extended date as may be decided by the Board of Directors of the Company or the Operations Committee, subject to rele vant approvals. In the event of an early closure or extension of the Issue, the Company shall ensure that notice of the same is provided to the prospective investors through an advertisement in a daily national newspaper with wide circulation and a regional daily with wide circulation where the registered office of the Company is located on or before such earlier or initial date of Issue closure. On the Issue Closing Date, the Application Forms will be accepted only between 10 a.m. and 3 p.m. (Indian Standard Time) and uploaded until 5 p.m. or such extended ti me as may be permitted by the Stock Exchange. Further, pending mandate requests for bids placed on the last day of bidding will be validated by 5 p.m. on one Working Day post the Issue Closing Date. For further details please refer to our section titled “General Information” on page 41 of the Prospectus.
Capitalised terms not defined herein shall have the same meaning as assigned to such terms in the Prospectus dated March 29, 2022.
DISCLAIMER
DISCLAIMER OF ISSUER: Edelweiss Housing Finance Limited (“Company”), subject to market conditions, and ot her considerations, is proposing a public issue of secured redeemable nonconvertible debentures (“NCDs”) and has filed a Prospectus dated March 29, 2022 (“Prospectus”) with the Registrar of Companies, Maharashtra at Mu mbai, BSE Limited (“BSE”) and Securities and Exchange Board of India (“SEBI”). The Prospectus is available on the website of the Company at www.edelweisshousingfin.com, on the website of BSE at www.bseindia.com, on the website of the lead managers at www.equirus.com and www.edelweissfin.com, and on the website of SEBI at ww w.sebi.gov.in. Investors proposing to participate in the Issue should invest only on the basis of the infor mation contained in the Prospectus. Investors should note that investment in the NCDs involves a high degree of risk and for details in relation to the same, refer to the Prospectus, including the section titled “Risk Factors” and “Material Developments” beginning on page 15 and 243 of the Prospectus.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE should not in any way be deemed or construed that the Prospectus has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors are advised to refer to the Prospectus dated March 29, 2022, for the full text of the Disclaimer clause of the BSE.
DISCLAIMER CLAUSE FOR USE OF BSE ELECTRONIC PLATFORM: It is to be distinctly understood that the per mission given by the BSE to use their network and software of the Online system should not in any way be deem ed or construed as compliance with various statutory requirements approved by the Exchange; not does it in any manner warrant, certify or endorse the correctness or completeness of any of the compliance with the statutory and other requirements; nor does it take any responsibility for the financial or other soundness of this Company, its promoters, its management or any scheme or project of this Company.
DISCLAIMER CLAUSE OF CRISIL
CRISIL Ratings Limited (CRISIL Ratings) has taken due care and caution in preparing the Material based on the information provided by its client and / or obtained by CRISIL Ratings from sources which it considers reliable (Information). A rating by CRISIL Ratings reflects its current opinion on the likelihood of timely payment of the obligations under the rated instrument and does not constitute an audit of the rated entity by CRISIL Ratings. CRISIL Ratings does not guarantee the completeness or accuracy of the information on which the rating is base d. A rating by CRISIL Ratings is not a recommendation to buy, sell, or hold the rated instrument; it does not com ment on the market price or suitability for a particular investor. The Rating is not a recommendation to invest / disinvest in any entity covered in the Material and no part of the Material should be construed as an expert adv ice or investment advice or any form of investment banking within the meaning of any law or regulation. CRISIL Ratings especially states that it has no liability whatsoever to the subscribers / users / transmitters/ distributors of the Material. Without limiting the generality of the foregoing, nothing in the Material is to be construed as CRISIL Ratings providing or intending to provide any services in jurisdictions where CRISIL Ratings does not ha ve the necessary permission and/or registration to carry out its business activities in this regard. Edelweiss Hou sing Finance Limited will be responsible for ensuring compliances and consequences of non-compliances for use of the Material or part thereof outside India. Current rating status and CRISIL Ratings’ rating criteria are avail able without charge to the public on the website, www.crisil.com. For the latest rating information on any instr ument of any company rated by CRISIL Ratings, please contact Customer Service Helpdesk at 1800-267-1301.
DISCLAIMER STATEMENT OF ACUITÉ RATINGS & RESEARCH LIMITED
An Acuité rating does not constitute an audit of the rated entity and should not be treated as a recommendation or opinion that is intended to substitute for a financial adviser’s or investor’s independent assessment of whe th er to buy, sell or hold any security. Acuité ratings are based on the data and information provided by the issuer and obtained from other reliable sources. Although reasonable care has been taken to ensure that the data and information is true, Acuité, in particular, makes no representation or warranty, expressed or implied with resp ect to the adequacy, accuracy or completeness of the information relied upon. Acuité is not responsible for any errors or omissions and especially states that it has no financial liability whatsoever for any direct, indirect or consequential loss of any kind arising from the use of its ratings. Acuité ratings are subject to a process of survei llance which may lead to a revision in ratings as and when the circumstances so warrant. Please visit our website (www.acuite.in) for the latest information on any instrument rated by Acuité..
