ECl Finance, non banking financial company (NBFC) arm of Edelweiss Financial Services on Thursday announced secured redeemable non- convertible debentures (NCD). The NCDs are being priced at Rs 1,000 each and through the issue and through the public issue, the company plans to raise up to Rs 500 crore, Rs 250 crore with the option of retaining another Rs 250 crore as over-subscription.
Commenting on the NCDs, Edelweiss Financial Services Chairman & CEO Rashesh Shah said, "Our latest NCDs, with its attractive returns offer an opportunity for retail investors to make better investments." The public issue of the NCDs would open on January 16 and close on January 27 and would have a tenure ranging from 36 months to 60 months with an interest yield of up to 11.85 per cent per annum. The company plans to use the issue proceeds for financing activities, meeting capital expenditure and working capital requirements.
Talking about the growth plans ECl Finance is targeting, company's Executive Director & COO, Hinamshu Kaji said, "While corporate loans would remain our bread and butter, we plan to increase our focus towards small and medium enterprises (SME) and retail loans. As on March, 2013, ECl's total loan book stood at Rs 4,800 crore out of which nearly Rs 150- 200 crore were SME loans."