ECL Finance to raise up to Rs 500 cr via debentures

ECL Finance, an arm of Edelweiss Financial Services, today said it will raise up to Rs 500 crore through an offer of debentures.

The public issue of the non-convertible debentures (NCDs) will open on January 16 and close on January 27, ECL Finance EVP and Regional Head Akhil Mangla told reporters here.

The NCDs would have a tenure ranging from 36 months to 60 months and will yield an interest of up to 11.85 per cent per annum.

ECL Finance, a non-deposit-taking NBFC, would use the issue proceeds for financing activities, meeting capital expenditure and working capital requirements.

According to the prospectus filed with Sebi, the company would raise Rs 250 crore with the option of retaining another Rs 250 crore as over-subscription.

The NCDs would be listed on the BSE. The issue has been rated 'AA' by rating agency Care which indicates a high degree of safety.

"The attractive returns of the NCD offers an opportunity for retail investors to make better investments," Edelweiss Financial Services Chairman & CEO Rashesh Shah said.

In the first half of the current fiscal, ECL Finance has reported a net profit of Rs 102 crore and a total income of Rs 427 crore.

The company's loan book has grown 49 per cent over the last three fiscals and has net NPAs of 0.16 per cent at the end of 2012-13 fiscal. Loan book as on March 2013 was Rs 4,800 crore.

It provides loans to retail individuals, corporates and SME sector, among others, Edelweiss Financial Services Executive Director and Group CEO Himanshu Kaji said.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • India’s festivals teach us to share our wealth and joy

    India is an aporia in its own true sense.

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Zehra Naqvi

How smells evoke strong memories

Remember that time when a passing fragrance transported you to ...

Dharmendra Khandal

Indian zoos need a fresh approach

Recently, when a man jumped in a tiger trench of ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture