Edelweiss Financial Services Limited

Started in 1995 in Mumbai as 'Edelweiss Capital Limited', Edelweiss Financial Services Limited (EFSL) is an investment banking firm and Merchant Banker. EFSL is also involved in the business including credit including retail and corporate credit, wealth management, asset management, asset reconstruction, and insurance including life and general insurance businesses through its subsidiaries. Edelweiss Financial has 47 subsidiaries (including NBFCs and an HFC). It has 339 offices in 145 cities in India and six international locations. It employed approximately 9,197 employees as of September 30, 2020. EFSL is a publicly traded company since 2007.   Based on rating the coupon rates are very attractive and tempting, but a caution is needed as debt market experts are divided on this. Some say that being the first debt offer, the company is offering investor friendly coupon rates, while other says that due to recent poor financial performance, despite A/AA rating, the company is compelled to opt for higher interest rates. Thus a caution is needed for investment in tempting offer. However, since company is going to utilize around 75% for debt clearances, it may augur well going forward. So we give NEUTRAL rating to this debt offer.

• 1 Rashesh Shah,
• 2  Venkatchalam Ramaswamy,
• 3  Vidya Shah,
• 4  Aparna T.C.