The NCD issue opened on June 8 and is scheduled to close on June 19, with the company reserving the right to close the issue earlier or extend the closing date, subject to regulatory approvals.
The issue comprises 10 series of NCDs with tenures of 24 months, 36 months, 60 months and 120 months. Investors can choose from annual, monthly and cumulative interest payment options. According to the company, the effective annual yield on the instruments ranges between 8.64% and 10%.
The NCDs have a face value of ₹1,000 each and will be issued and traded only in dematerialised form. The allotment of NCDs will be made on the basis of the date of upload of applications into the electronic book of BSE. In case of oversubscription on any day, allotment will be made on a proportionate basis in consultation with the stock exchange.
EFSL said at least 75% of the proceeds from the issue will be utilised for repayment or prepayment of interest and principal on existing borrowings, while the remaining funds will be used for general corporate purposes. The allocation towards general corporate purposes will not exceed 25% of the amount raised.
The proposed NCDs have been assigned a rating of “CRISIL A+/Stable” by CRISIL Ratings, indicating an adequate degree of safety regarding timely servicing of financial obligations.
The NCDs are proposed to be listed on the BSE to provide liquidity to investors. Trust Investment Advisors Pvt Ltd, Nuvama Wealth Management Ltd and Tipsons Consultancy Services Pvt Ltd are acting as lead managers to the issue.
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