Edelweiss Financial stock zooms 8% as firm raises Rs 456 cr via NCDs

Shares of Edelweiss Financial Services Ltd (EFSL) zoomed nearly 8% today after the firm said it has raised over Rs 456 crore through public issuance of Non-Convertible Debentures (NCDs). Edelweiss Financial Services stock opened with a gain of 2.92% at Rs 74 against the previous close of Rs 71.90 on BSE.

The stock rose 7.79% to an intraday high of Rs 77.5 on BSE. The share trades higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages. The stock has gained 9.26% in one year and risen 5% since the beginning of this year.

The stock has climbed 7.7% in the last two days. Total 2.06 lakh shares of the firm changed hands amounting to a turnover of Rs 1.55 crore on BSE.

Market cap of the firm rose to Rs 7,223 crore on BSE. The stock hit a 52 week high of Rs 100.80 on July 14, 2021 and fell to a 52 week low of Rs 56.70 on May 3, 2021.

EFSL said it successfully completed the issuance and allotted 45,62,472 NCDs with the face value of Rs 1,000 each, amounting to Rs 456 crore. The financial services firm mentioned in a statement that it decided on an early closure on December 22, as against the scheduled closure on December 27.

Edelweiss stated that it received over 16,000 applications from across the country. Almost 46 per cent of the total issue size got subscribed for 5 years and 10 year tenures, indicating that investors are looking to subscribe for long term. The issue saw a significant demand in the retail and HNI segments with a total collection of Rs 361 crore. There was good interest from existing investors, it added.

Rashesh Shah, Chairman, Edelweiss Group said, "The consistent positive feedback to our NCD issues reassures us of the faith bestowed by the investors. The subscription to the Issue was very good and we closed it earlier than planned."

Rating agency CRISIL rated these NCDs 'AA-' with a negative outlook, while Acuite Ratings rated it 'AA' with a negative outlook.