The face value of NCDs is Rs 1,000 each, aggregating to Rs 250 crore and with a green-shoe option to retain over-subscription up to another Rs 250 crore.
Edelweiss Housing Finance Ltd (EHFL) plans to raise Rs 500 crore through secured non-convertible debentures for home loans and small and medium enterprise (SME) lending.
The face value of NCDs is Rs 1,000 each, aggregating to Rs 250 crore and with a green-shoe option to retain over-subscription up to another Rs 250 crore.
"We see significant opportunity for Edelweiss given out product suite, focus on affordable housing, wide grographic presence. The NCD will help raise capital for portfolio growth and geographic expansion of branches from 45 to 78 over the next 18 months," mentioned Anil Kothuri, chief executive officer of EHFL.
The non-banking financing institution aspires to become lender for retail home loans and SMEs, particularly in Tier II cities.
The rate of return offered is 9.50% (three years), 9.75% (five years) and 10% (10 years).
With the funds raised, it intends to repay the existing high debt of up to Rs 150 from around four to five financial institutions. The balance will be utilised for EHFL's growth that is from the present network of 45 to 73 branches.
"India's age of compounding has started," said Rashesh Shah, chairman and chief executive officer of Edelweiss Group in the context of Indian economy likely to become fourth largest GDP country in world by 2025.
Anuj Puri, chairman and country head at ?Jones Lang LaSalle, a real estate services firm, said, "Not many are able to service the Tier-II cities in India, which EHFL intends to and there is huge demand. In fact many more players can join this area."
The issue opens on July 8, 2016, and closes on July 27, 2016, and will be listed on BSE and National Stock Exchange.
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