NCD IPO - Edelweiss Financial Services

Edelweiss Financial Services has announced a public issue of secured non-convertible debentures (NCDs), offering an effective yield of up to 9.70% to investors.

Rated A+ (Negative) by ICRA and AA (Outlook: Negative) by Acuite Ratings & Research, the issue has a base size of ₹200 crores, with the option to retain oversubscription up to ₹200 crores, aggregating up to ₹400 crores.

Series Frequency of Payment Tenor Cupon Rate Effective Yield
I Monthly 36 Months 8.75% 9.10%
II Annual 36 Months 9.10% 9.09%
III Cumulative 36 Months NA 9.10%
IV Monthly 60 Months 9.15% 9.54%
V Annual 60 Months 9.55% 9.54%
VI Cumulative 60 Months NA 9.55%
VII Monthly 120 Months 9.30% 9.70%
VIII Annual 120 Months 9.70% 9.69%

Issue Period 17th August to 6th September 2021
Minimum Application 10 NCDs and in multiples of 1 thereafter
FV/Issue Price Rs. 1000 per NCD

“Acuite AA (Outlook: Negative)” and “[ICRA]A+(Negative)”
Rating should always mentioned completely, to give correct picture. :slight_smile:

Corrected :+1:

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Today Edelweiss Financial Services Ltd. is opening its NCD IPO. What are the views of this Edelweiss NCD IPO. Can i invest in this NCD IPO?

Yes, i know today Edelweiss Financial Services Ltd. is opening its NCD IPO. Shares of Edelweiss Financial Services Ltd fell 5% after a report that the ministry of corporate affairs (MCA) has started investigating allegations of financial irregularities at the conglomerate’s asset reconstruction arm (according to report). I seem there is problem in the past about Edelweiss Financial Services Ltd. So, I don’t recommend have to invest in Edelweiss Financial Services Ltd. NCD IPO.

@Rajiverma You are right, Edelweiss Financial Services Ltd. NCD IPO is great investment opportunity for you. @anujpandey i seem Edelweiss Financial Services Ltd. showing great wealth opportunity and you don’t have to be negative.

I just checked with a broker. I am getting edelweiss NCD at a discounted price in secondary market which is why i decided not to buy through IPO.

Well you need to understand that investment in this NCD carries a slightly higher risk, which is indicated in rating and hence it is offering higher interest rate to compensate the risk.
Also, though these NCD will be listed, trading volume in it is very thin and selling it at required price in between might be difficult.

So if you are willing to take slightly extra risk and can hold it till maturity, only then invest in it

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@Genz but if u buy from secondary market , u need pay brokerage etc and my experience when you ask brokers for the NCD they change price according to quantity. I am scared to talk to my broker now

Agree with you if u have medium risk appetite, you should by 3 yr maturity NCD and hold till maturity, better only buy 10-15% of your bond portfolio, no point being extra aggressive.

@rajumehta I tried some time back they were very transparent in pricing and quantity. Of course you can buy or invest in Edelweiss Financial Services Ltd NCD IPO. You can read this blog- Edelweiss NCD IPO August 2021 - Invest in Edelweiss Financial Services Limited IPO ( for more information about Edelweiss NCD 2021.

@rajumehta That is suprising. I got in touch with a couple of days back and bought the Edelweiss bonds at a discounted price. Brokerage is also present in IPO, FYI. You can talk to them. They will guide you and explain you in detail.

If you are investing in IPO there should be no brokerage charged.

Generally my experience is, if you want to buy small quantities, buying in market for previous series can work. If you want to invest bigger amount, getting it at lower price in market is difficult.

@Akash_Shah In an IPO, the customers pay the face value of the bond. However, once the units are allotted, a percentage of brokerage is passed on to the brokers. In case of Edelweiss (similar bond), I bought it at a discounted price in secondary market.

That’s not brokerage, that’s comission which is paid by issuing company, not by investor.

When you are buying in market, you can see that it is trading at 995 currently in zerodha, but when you buy a brokerage will be added by zerodha (or your broker) so actual price will be slightly higher.

I understand you bought at discount, all I am saying is that depends on quantity you are buying. If you want to invest Rs. 50 lakhs, you will not be able to find that much quantity at discount in previous series. You might actually have to pay premium for that.
But you can easily get rs. 50 lakhs worth of bonds in ipo at face value.
That is the difference I am trying to convey.

@Akash_Shah When I buy bonds in secondary market, there is no brokerage paid to my demat provider because funds are not outgoing from my trading account. I pay the price directly from my bank to clearing corporation. Also, for higher quantity that you mentioned, from what I understood from my broker, the higher the quantity, the more I can negotiate on the price.
Lastly, there is an upper limit of 15-20L that you can invest in IPO in retail category.