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Jaipur, December 12, 2018: ECL Finance Ltd (ECLF), the NBFC arm of Edelweiss Group, today announced the public issue of Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs. 1,000 each, aggregating to Rs. 2,500 million, with an option to retain over-subscription up to Rs. 7,500 million aggregating to a total of Rs. 10,000 million (Rs. 1,000 crores).
*The NCDs offer an effective yield of 10.20% p.a. for 39 months tenure, 10.42% p.a. for 60 months tenure and 10.64% for 120 months tenure.
CRISIL has rated the offering “CRISIL AA/Stable” and ICRA has given it a “[ICRA] AA (Stable)” indicating that the instruments are considered to have a high degree of safety for timely servicing of financial obligations and carry very low credit risk.
Total income and profit after tax (PAT) of ECL Finance Ltd. for the half year ended September 30, 2018 (Limited Review) was Rs. 19,875.18 million and Rs. 2,557.40 million, respectively. The Company’s income witnessed a CAGR of 39.32% from Rs. 8,122.76 million in FY2014 to Rs. 30,600.27 million in FY2018 and PAT witnessed a CAGR of 30.35 % from Rs. 1,600.44 million in FY 2014 to Rs. 4,620.47 million in FY 2018. The Loan Book as per Ind GAAP of the Company has witnessed a CAGR of 37.84% from Rs. 60,959.79 million in FY2014 to Rs. 220,081.23 million in FY2018.
The funds raised through this Issue will be used for purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the Company and for general corporate purpose.
IIFL Holdings Limited, Edelweiss Financial Services Limited, Axis Bank Limited and Trust Investment Advisors Private Limited are the lead managers for this NCD Issue. The Public Issue opens on 13 December, 2018 and closes on 11 January 2019, with an option of early closure**. The NCDs will be listed on BSE Limited and National Stock Exchange of India Limited to provide liquidity to the investors.
**The subscription list for the Issue shall remain open for subscription upto 5 p.m. on all working days, with an option for early closure or extension by such period, as may be decided at the discretion of the duly authorized committee of Directors of our company subject to necessary approvals, if any. In the event of such early closure of the Issue or extension of the Issue, our Company shall ensure that notice of such early closure or extension of the Issue is given as the case may be on such date of closure through advertisement/s in a leading national daily newspaper with wide circulation on or before such earlier or initial date of Issue
About ECL Finance Limited:
ECL Finance Limited (ECLF) was set up on July 18, 2005 as a wholly owned subsidiary of Edelweiss Financial Services Limited (EFSL). It is a Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-NDSI) registered with the Reserve Bank of India.
ECLF is primarily engaged in the business of corporate lending, providing finance to industrial enterprises, SMEs and individuals, and investment in other securities. Its products include loans to SME, loans against property, loans against securities, structured collateralized loans to corporates and real estate finance etc.
The company is headquartered in Mumbai and the network of branches across India enables it to service clients across locations.
About Edelweiss Financial Services
The Edelweiss Group is one of India’s leading diversified financial services company providing a broad range of financial products and services to a substantial and diversified client base that includes corporations, institutions and individuals. Edelweiss’s products and services span multiple asset classes and consumer segments across domestic and global geographies. Its businesses are broadly divided into Credit Business (Retail Credit comprises of Retail Mortgage, SME and Business Loans, Loan against Securities, Agri and Rural Finance, Corporate Credit) Franchise & Advisory Business (Wealth Management, Asset Management and Capital Markets) and Insurance (Life and General). The Balance Sheet Management Unit operations manage the liquidity and Balance Sheet for the entire group.
The group’s research driven approach and proven history of innovation has enabled it to foster strong relationships across all client segments. The group has sizeable presence in large retail segment through its businesses such as Life Insurance, Housing Finance, Mutual Fund and Retail Financial Markets.
Edelweiss Financial Services trades under the symbols NSE: EDELWEISS, BSE: 532922, Reuters: EDEL.NS and EDEL.BO and Bloomberg: EDEL IS and EDEL IB.
To learn more about the Edelweiss Group, please visit www.edelweissfin.com
DISCLAIMER OF ECL FINANCE Ltd: ECL Finance Limited, subject to market conditions and other considerations is proposing a public issue of secured, redeemable non-convertible debentures (“NCDs”) and has filed the Shelf Prospectus dated 4 December 2018 and Tranche I Prospectus dated 4 December 2018 with the Registrar of Companies, Maharashtra at Mumbai, National Stock Exchange of India Limited, BSE Limited and SEBI. The Shelf Prospectus dated 4 December 2018 and Tranche I Prospectus dated 4 December 2018 are available on our website https://eclfinance.edelweissfin.com, on the website of the stock exchanges www.nseindia.com, www.bseindia.com and the respective websites of the lead managers at www.iiflcap.com, www.edelweissfin.com, www.axisbank.com and www.trustgroup.in. Investors proposing to participate in the issue, should invest only on the basis of the information contained in the Shelf Prospectus dated 4 December 2018 and Tranche I Prospectus dated 4 December 2018. Investors should note that investment in NCDs involves a high degree of risks and for details relating to the same, please refer to Shelf Prospectus dated 4 December 2018, including the section on “Risk Factors” beginning on Page 18 of the Shelf Prospectus dated 4 December 2018.
DISCLAIMER CLAUSE OF BSE: It is to be distinctly understood that the permission given by BSE should not in anyway be deemed or construed that the Prospectus has been cleared or approved by BSE 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 for the full text of the Disclaimer Clause of the BSE.
DISCLAIMER CLAUSE OF NSE: It is to be distinctly understood that the permission given by NSE should not in anyway be deemed or construed that the Offer Document has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised to refer to the Offer Document for the full text of the Disclaimer Clause of the NSE.
DISCLAIMER CLAUSE OF CRISIL: CRISIL ratings reflects CRISIL’s current opinion on the likelihood of timely payment of the obligations under the rated instrument and CRISIL does not guarantee the accuracy, adequacy or completeness of the information reviewed. CRISIL ratings are not a recommendation to invest / disinvest in any and should not be construed as an expert advice or investment advice or any form of investment banking within the meaning of any law or regulation. CRISIL is not responsible for any errors and especially states that it has no financial liability whatsoever to the subscribers/users/transmitters/distributors of this product
DISCLAIMER CLAUSE OF ICRA: An ICRA rating is a symbolic indicator of ICRA’s current opinion on the relative capability of the issuer concerned to timely service debts and obligations, with respect to the instrument rated. ICRA ratings should not be treated as recommendation to buy, sell or hold the rated debt instruments. ICRA ratings are subject to a process of surveillance, which may lead to revision in ratings. ICRA in particular makes no representation or warranty, express or implied as to the accuracy, timelines or completeness of any such information. All information contained herein must be construed solely as statement of opinion, and ICRA shall not be liable for any losses incurred by users from any use of this publication or its contents.
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 allotments should be made to the applicants on proportionate basis.
