Today, Edelweiss Financial Services announced a public offering of secured callable non-convertible debentures (NCDs) to raise up to Rs 400 crore from investors. The issue will be open on January 3.

The NCDs have a face value of Rs 1,000. The company will initially attempt to raise Rs 200 crore, with an option to remain oversubscribed by up to Rs 200 crore. According to reports, NCD has a total of 10 series with fixed coupons, and the periods are 24 months, 36 months, 60 months and 120 months. You can choose annual payment, monthly payment and cumulative interest payment.

It said that the effective annual rate of return for NCDs ranged from 8.99% to 10.46%. The company will also give an additional 0.20% per annum to those who hold shares in the company or have invested in any previous NCDs or bonds of Edelweiss Group companies.

In comparison, the State Bank of India’s 1-5-year fixed deposit rates ranges between 6.1% and 6.25%.

The proposed NCD has been rated CRISIL AA-/Negative (pronounced CRISIL Double A Negative rating, Outlook Negative) and Acuite AA-/Negative (pronounced Acuite Double A Negative).

The company stated that at least 75% of the funds raised in this offering would be used to repay and prepay the interest and principal of the existing loans, and the balance is intended to be used for general corporate purposes.

Equirus Capital Private Limited is the lead manager of the NCD issue.

The issue is scheduled to close on Monday, January 23, with an option to close earlier. NCD will be listed on BSE Limited to provide liquidity to investors.