Edelweiss Financial Services Launches ₹300 Crore NCD Issue; Stock Gains 2.7%

Mumbai, September 24, 2025 — Edelweiss Financial Services Limited has rolled out a public offering of secured redeemable non-convertible debentures (NCDs) worth ₹3,000 million. With attractive yields of up to 10.20% per year, this offering is designed for investors seeking reliable fixed-income options. Following this announcement, Edelweiss’s stock jumped 2.69% to ₹120.00 in early morning trading on Wednesday.

Established in 1995 and renamed Edelweiss Financial Services in 2011, the organization offers retail and corporate credit, mutual funds, insurance, and asset management services. It has almost 9.73 million clients and functions through 257 offices with 5,615 employees.

Key Features of the NCDs

It will be offered through a base size of 1,500 million and an overallotment of the same size, totaling 3,000 million altogether. Investors will be allowed to invest under this program over a period of 24 to 120 months and earn a yearly yield of 9.00% to 10.25%. NCDs are stable-rated, with a Crisil A+ rating, and have an average risk-return profile. The IPO is scheduled to open on September 24, 2025, and close on October 8, 2025. It will then get listed on BSE Limited.

Use of Funds and Market Reaction

Edelweiss indicated that at least 75% of the proceeds will be used for repayment or prepayment of borrowings, while the remainder will be for general corporate purposes. This is expected to alleviate the debt burden and enhance financial flexibility.

As of September 24, the stock closed at ₹120.00, an increase of ₹3.14 (2.69%) from its previous close of ₹116.86, indicating an optimistic market reaction that suggests the company is in good financial condition. The stock price reached a high of ₹120.79 and a low of ₹116.38 during intraday trading, with over 56.90 lakh shares changing hands. The market capitalization of the company is ₹11,371.52 crore.

Outlook

With decent yields, modest credit grades, and debt-reduction objectives, the NCD sale positions Edelweiss to strengthen its balance sheet. Investor sentiment, however, will depend on overall market liquidity and confidence in the company’s financial stability.

REF: https://nsearchives.nseindia.com/corporate/EDELWEISS_24092025112139_ExchangeIntimation.pdf

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