ECL Finance NCD issue successfully mobilizes over INR 1000 crore

Retail category oversubscribed with a total collection of ~INR 500 crs from close to 32,000 applications across 80 locations pan India

73% of total collection from the 5 and 10 year tenure demonstrating long term interest by investors

Individual HNI Category mopped up ~INR 230 crs from around 550 investors with an average investment size of INR 44 lacs

Deepthi | Myequity news | Date : 03-01-2019 19:40:00 IST

The Public Issue of Secured Redeemable Non-Convertible Debentures by ECL Finance Ltd (ECLF), the NBFC arm of Edelweiss Group has turned out to be a big draw with investors with the issue being fully subscribed across categories. The issue successfully mobilized over INR 1000 cr making it one of the only in the last quarter to have even the green shoe option fully subscribed.

The issue has seen a keen interest from retail investors with the retail bucket being oversubscribed by 1.78times with total collection of ~ INR 500Cr against bucket size of INR 300Crs.The issue received close to 32,000 applications from over 80 locations pan India. This is one of the highest in terms of volumes of applications received in recent times and the wide dispersion indicates the brands reach and penetration.

Similarly, the issue was widely supported as subscription from Individual HNI Category stood at ~INR 230Crs with an average application size of around INR 44 lacs from around 550 investors.

Commenting on the success, Mr. Himashu Kaji, Executive Director and Group COO, Edelweiss, said, "We are delighted with the success of the NCD issue. Despite the current market uncertainties, the tenure wise response has been great where we have managed to get 73% collection in the longer duration i.e. 5 to 10 years. This is a true reflection of the confidence and trust that our investors have in our brand to lock their savings with us for the long term.”

“Post implementation of ASBA in Debt issues, ours is the first issue to get such response and get fully subscribed along with the green shoe option,” Kaji added.

Despite an ongoing period of market volatility, the sturdy ECLF business model has raised ~ INR 3000Crs this year (INR 2000Cr in July and INR 1000Cr now) for the brand. The funds raised through this issue will be used for the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the Company and for general corporate purpose.

About ECL Finance Limited:

ECL Finance Limited (ECLF) was set up on July 18, 2005 as a wholly owned subsidiary of Edelweiss Financial Services Limited (EFSL). It is a Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC-NDSI) registered with the Reserve Bank of India.

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