Edelweiss Financial Services NCD IPO

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The rating of an issuer company reflects its past growth and performance. The rating increases when the company consistently performs well and decreases when it is not performing well.

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AAA, AA+, AA, AA-, A+, A, A-

Moderate risk

BBB+, BBB, BBB-, BB+, BB

High risk

BB-, B+, B, B-, C, D

The rating agency for this Bond is Crisil.

About

Edelweiss Financial Services Limited (EFSL) was incorporated on November 21, 1995, initially as Edelweiss Capital Limited. It began operations as an investment banking firm and later expanded its services to include retail and corporate credit, mutual funds, alternative asset management, asset reconstruction, and both life and general insurance. EFSL serves a broad range of clients, including corporates, institutions, high-net-worth individuals, and retail customers. As of FY25, it had 252 domestic and three international offices. The company has a staff strength of about 5,612 employees. Use of Proceeds The proceeds from the current issue of NCDs are proposed to be used for the following purposes: Repayment or prepayment of interest and principal of existing borrowings of the company. General corporate purposes;

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Edelweiss Financial Services claims to have successfully expanded from a capital markets advisory firm to a diversified financial services group. The company operates across multiple sectors, including asset management, insurance, asset reconstruction, and credit, which it claims helps to mitigate short-term market volatility and drive long-term growth.

With a network of 255 offices, including 252 domestic and three international, as of FY25, the company has a wide reach. It claims that this extensive presence enables it to acquire more customers, especially for its retail services like asset management, retail credit, and insurance.

The company’s credit business, operating under its non-banking financial company (NBFC) and housing finance company (HFC) licenses, is subject to the capital-to-risk assets ratio (CRAR) requirements prescribed by the Reserve Bank of India (RBI). The company is adequately capitalised in these segments.

The company claims to source its funding primarily through redeemable non-convertible debentures and credit facilities from a range of lenders, including nationalised and private Indian banks. Edelweiss Financial Services further states that it has built long-term, stable relationships with these lenders, ensuring continuous access to capital for business expansion.

The company claims to have a dedicated risk management team and robust internal control systems to monitor and mitigate risks across its businesses. It maintains a controlled credit book with gross non-performing assets (NPAs) for its credit entities at 2.31 percent, 1.85 percent, and 2.01 percent, as of FY25, FY24, and FY23, respectively.

The company claims to have integrated high levels of technology across its businesses. Its alternative business leverages a digital control centre for real-time monitoring of infrastructure investments, while its mutual fund business features one of the quickest investor transaction journeys. The company's general insurance business has adopted a cloud-native platform for motor claims and telematics-enabled ‘usage-based’ insurance, including integration with the Ayushman Bharat Digital Mission. Additionally, Edelweiss Financial Services claims to use a customised platform for loan origination and credit underwriting.

The company claims to have been assigned the following credit ratings: ACUITE A+ with a rating watch negative by ACUITE, BWR PP-MLD A+/Stable by Brickwork, CARE A/Stable by CARE, ICRA A+/ Stable by ICRA, and Crisil A+/Stable for its long-term NCDS. Additionally, it has also received credit ratings of BWR A+/Stable and Crisil PPMLD A+ /Stable for its long-term structured products (SPs). Further, the company states it has received credit ratings of Crisil A1+ and IVR A1+ by INFM for its short-term commercial paper.

The company has reported a consistent increase in profit after tax (PAT). It increased from Rs 405.56 crore in FY23 to Rs 528.05 crore in FY24 and Rs 535.82 crore in FY25.

Edelweiss Financial Services NCD

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