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Edelweiss Broking Limited NCD IPO

Edelweiss Broking Limited NCD IPO – July 2022, Should you invest?

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High Yield | AA- Rated | Minimum Investment: 10k Only

Bond overview

Edelweiss Broking Ltd is issuing the Non-Convertable Debentures. These NCDs are AA-/Negative by CRISIL and AA/Negative by ACUITE. The NCDs are being issued in three series: coupon ranges from 8.75% to 9.95% p.a. and different tenures of 2 years, 3 years, 5 years and 10 years. The NCDs are secured and redeemable in nature.

Bond overview for Edelweiss Broking Limited NCD IPO INVEST NOW

Coupon rates and effective yield for each of the series

Coupon rates and effective yieldAllocation Ratio

The allocation ratio is prepared based on norms laid down by SEBI. Before announcing the allocation ratio, the same has to be approved by SEBI.  Once the IPO subscription closes, applications will be divided into different categories. The category-wise allocation ratio is always decided and declared during the launch of the particular IPO. Considering the Allocation Ratio, units will be assigned to applicants. Refer to the chart to know the application ratio for Edelweiss Broking Limited NCD-IPO.

 

Allocation Ratio for Edelweiss Broking Limited NCD IPO

Investment Process for EBL NCD IPO

You can invest in IPOs via GoldenPi in 3 easy steps.

If the investment amount is  less than & up to 10 lakhs, retail investors can apply for an IPO online.

investment amount is  less than & up to 10 lakhs

If the investment amount is more than 10 Lakhs.

investment amount is more than 10 Lakhs.

Issue analysis

Pros 

  • The coupon rate is between 8.75% to 9.95% which is much higher than FDs.
  • EBL is a 100% owned subsidiary of Edelweiss Securities Limited. It will continue to receive support from the Edelweiss group, even after several changes are made in the business segments of the group. 
  • The group maintains the liquidity cushion of around 9 to 10% of the balance sheet.

Cons 

  • Debt Service Coverage ratio has been decreasing indicating that the company might not be able to service its debt through available profits.
  • The Asset quality remains vulnerable as the group declared the stage III assets as its gross NPAs. The ratio was 7.7% on March 31, 2021.

To get better returns than Bank FDs, invest in NCD-IPOs online.

About Edelweiss Broking Limited.

Founded in 2008, Edelweiss Broking Ltd. is a financial services company headquartered in Mumbai, India. The company is a subsidiary of the Edelweiss group which was founded by Rashes Shah. The company is registered with NSE, BSE and MCX Stock Exchange.

Edelweiss Broking Limited NCD IPO – July 2022, Should you invest?
It acts as a distributor of various financial products-
  1. Mutual funds, 
  2. Bonds, 
  3. Non Convertible Debentures, 
  4. Portfolio Management Service, 
  5. Structured products & 
  6. Alternative investment fund.

Financial Overview

Financial Overview for Edelweiss Broking Limited NCD IPO

Cash flow for last 5 years (In crores)

Cash flow for Edelweiss Broking Limited NCD IPOCash flow refers to the movement of cash in and out of the business at a specific point in time. It represents the net balance of the cash movement.

    • *Cash flow from operating activities reflects the amount a company generates through its product of services.
    • **Cash flow from investing activities reflects cash generated and spent relating to investing activities, like purchase of assets, sales of securities etc.
    • ***Cash flow from financing activities gives an insight into the financial stability of a company to its investors. It reflects the net flows of cash that are used to fund the company.

Ratio Analysis

Ratio Analysis for Edelweiss Broking Limited NCD IPO

Key Highlights

  • Active Client base- 3 lacs
  • Client assets spread across wide number of active broking accounts- Rs1.5 Lac crores
  • Relationship Managers- 950 spread across 57 cities in India.
  • Client Acquisition Partners- 23,000
  • 71 branches across 57 cities.

Strengths

  • Despite the tough macro environment, the group has raised Rs 3700 Cr over the past 24 months across several verticals.
  • Adequate liquidity cushion of around Rs. 2625 Cr and un-utilised bank lines of around Rs. 450 Cr as on 31 March, 2021.

Weakness

  • Negative Cashflows from operating and Investing activities.

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Details Maximum yieldOverall Issue Size Credit RatingStart DateClosing DateFor more details
Edelweiss Financial Services Limited NCD IPO – January 202410.45%250 crCRISIL A+ Stable January 9, 2024January 22, 2024More Details
Edelweiss Financial Services Limited NCD IPO – October 202310.45%100 cr CRISIL AA- Negative October 6, 2023October 19, 2023More Details
Edelweiss NCD IPO July 202310.46%%300 crCRISIL & ACUiTE AA- (Negative)July 4, 2023July 17, 2023More Details
Edelweiss NCD IPO April 202310.46%%200 crCRISIL & ACUiTE AA- (Negative)April 6, 2023April 21, 2023More Details
Edelweiss NCD IPO January 202310.46%%400 crCRISIL & ACUiTE AA- (Negative)January 3, 2023January 25, 2023More Details
Edelweiss NCD IPO October 202210.10%400 crCRISIL & ACUiTE AA- (Negative)October 3, 2022October 17, 2022More Details
Edelweiss NCD IPO July 20229.95%300 crCRISIL AA- & ACUiTE AA (Negative)July 5, 2022July 26, 2022More Details
Edelweiss NCD IPO April 20229.70%300 crCRISIL AA- & ACUiTE AA (Negative)April 6, 2022April 26, 2022More Details
Edelweiss NCD IPO December 20219.70%200 crCRISIL AA- & ACUiTE AA (Negative)December 6, 2021December 22, 2021More Details
Edelweiss NCD IPO August 20219.70%400 crCRISIL AA- & ACUiTE AA (Negative)August 17, 2021September 6, 2021More Details
Edelweiss NCD IPO April 20219.70%2000 crACUiTE AA April 1, 2021April 23, 2021More Details

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3 comments

GoldenPi
GoldenPi July 13, 2022 - 4:28 AM

Thank you and keep reading our blogs.

Rayalsamy July 24, 2022 - 5:35 AM

Good analysis and easy to understand

GoldenPi
GoldenPi July 25, 2022 - 4:43 AM

Thank you for your kind words and keep reading our blogs.

Comments are closed.