Edelweiss Financial Services Limited NCD IPO – April 2024, should you invest?

High Yield | A+/Stable Rated | Minimum Investment: 10k Only

 

Edelweiss Financial Services Limited is issuing the Non-Convertible Debentures. These NCDs are A+/Stable rated by CRISIL. The NCDs are being issued in ten series: coupon ranges from 9% to 10.45% p.a. and different tenures of 24 months, 36 months, 60 months and 120 months . The NCDs are secured and redeemable in nature.

Edelweiss Financial Services Limited NCD IPO: Coupon rates and effective yield for each of the series 

Allocation 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 Financial Services Limited NCD-IPO. 

Investment Process for Edelweiss Financial Services Limited 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.

If the investment amount is more than 10 Lakhs. 

Financial Overview

Snapshot stating the Revenue, Expenses, Net Worth and PAT (In crores)

Cash flow for last few years (In crores)

Cash 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

Issue analysis

Pros 

• These are secured securities.
• The issuer is offering high coupon rates, when compared with FD rates.

Cons

• Macroeconomic conditions such as COVID have negatively impacted the company. However, these conditions are gradually improving. 
• The company is expected to face pressure as asset quality and profitability deteriorate.

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

About Edelweiss Financial Services Limited

First-generation business owners founded Edelweiss Financial Services Limited (EFSL), the parent company of the Edelweiss Group of enterprises, in 1995 to provide investment banking services, especially to technology companies. The business is headquartered in Mumbai, India. Rashesh Shah and Venkat Ramaswamy jointly founded it.

Business Verticals

Quick walk through on Financials details for 2023

Strengths

• Balanced Capitalisation-Capital raised from global investors, and businesses.
• A diversified player with a variety of financial services and a track record of developing strong competitive positions across industries

Weakness

• Low Profitability.
• Negative Cash flow

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Source- Prospectus March 28, 2024

Disclaimer- The information is published as on date 04/03/2024 based on information available on Prospectus March 28, 2024. The information may be subject to change in case of change in terms of prospectus or any other reason as the case maybe. Contents which are exclusively for educational information/knowledge sharing on capital market concepts and has no influence the investment/sale decisions of any investors