Edelweiss Financial shares zoom 8% as company raises Rs 456 cr via MNT

Shares of Edelweiss Financial Services Ltd (EFSL) soared nearly 8% today after the company said it raised more than Rs 456 crore through the public issuance of non-convertible debentures (NCDs). Edelweiss Financial Services shares 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 hit an intraday high of Rs 77.5 on BSE. The stock is trading above the 5-day, 20-day and 50-day moving averages, but below the 100-day and 200-day moving averages. The stock has gained 9.26% in one year and is up 5% since the start of this year.

The stock has climbed 7.7% over the past two days. A total of 2.06 lakh shares of the company changed hands, representing a turnover of Rs 1.55 crore on BSE.

The company’s market cap 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 issue and awarded 45,62,472 MNT with a face value of Rs 1,000 each, or Rs 456 crore. The financial services company said in a statement that it decided on an early closure on December 22, compared to the planned closure on December 27.

Edelweiss said it received more than 16,000 requests from across the country. Nearly 46% of the total issue size was subscribed for 5- and 10-year terms, indicating that investors are looking to buy for the long term. The show saw significant demand in retail and HNI segments with a total collection of Rs 361 crore. There was good interest from existing investors, he added.

Rashesh Shah, Chairman of Edelweiss Group, said: “The consistent positive feedback on our NCD issues reassures us of investor confidence. The subscription to the issue was very good and we closed it earlier than expected.

The rating agency CRISIL has rated these NTMs “AA-” with a negative outlook, while Acuite Ratings has rated it “AA” with a negative outlook.

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