ECL Finance Ltd, (ECLFL) a subsidiary of Edelweiss Capital Ltd. is coming out with an offer of Secured Redeemable Non-Convertible Debentures of the face value of Rs. 1,000 each to mobilize Rs. 500 crore including green shoe option of Rs. 250 crore. The issue opens for subscription on 16.01.14 and will close on or before 27.01.14.
ECLFL is one of the leading systemically important non-deposit taking NBFCs, focused on offering a broad suite of secured corporate loan products, retail loan products which are customized to suit the needs of the corporates, SMEs and individuals. The company is a part of the Edelweiss Group which is one of India's prominent financial services organization having businesses organized around four broad lines - Credit including Retail Finance and debt capital markets; Commodities; Financial Markets including Asset Management and Life Insurance services. Minimum application is to be made for 10 Bonds (i.e. Rs. 10000) and then in multiple of 1 bond thereon, thereafter. Allotment will be made in demat as well as physical mode, but trading will take place in demat form only. Post allotment it will be listed on BSE. Issue is rated as CARE/AA and BWR/AA (stable), which indicates instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The instrument carries coupon rate of 11.60% to 11.385% (additional 0.25% for permanent resident employees and stakeholders of the promoter company. Tenure of the scheme is 36 months and 60 months giving a yield of 12.24% to 12.79% (Pre-tax).
The funds raised through this Issue, after meeting the expenditures of and related to the Issue, will be used for the financing activities including lending and investments, subject to applicable statutory and/or regulatory requirements, to repay our existing loans and our business operations including for our capital expenditure and working capital requirements.
The issue is lead managed by ICICI Securities Ltd., Axis Capital Ltd and Edelweiss Financial Services Ltd. Axis Trustee Services Ltd is acting Trustee for Debenture and Link Intime India Pvt Ltd. is the registrar to the offer.
Average offer for moderate investment
Review By Dilip Davda on December 12, 2019
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
