ECL Finance Ltd (ECLF), the NBFC arm of Edelweiss Financial Services Limited, on Thursday said that it will raise up to Rs 500 crore through an offer of debentures.
“The issue opens on January 16, 2014 and closes on January 27, 2014 with an option of early closure,” ECL Finance EVP and Regional Head Akhil Mangla said.
The company will raise Rs 250 crore with the option of retaining another Rs 250 crore as over-subscription. The NCDs with a tenure ranging from 36 months to 60 months will pay an interest of up to 11.85% per annum.
The capital raised will be used for financing activities including lending and investments, other business operations including capital expenditure and working capital requirements.
The NCDs would be listed on the Bombay Stock Exchange. The issue has been rated 'AA' by rating agency Care, indicating a high degree of safety.
ICICI Securities Limited, Axis Capital Limited, and Edelweiss Financial Services Limited are the lead managers for this NCD Issue.
ECLF reported a a total income of Rs 427 crore and net profit of Rs 102 crore. The company’s loan book also witnessed a significant growth with a CAGR of 49.01% from FY2011 to FY2013.