New Delhi [India], Nov 24 (ANI): Edelweiss Financial Services Limited (EFSL) raised Rs 1,527.75 crore through the Qualified Institutions Placement (QIP) route, which opened on November 15 and closed on November 20.
The funds raised through the QIP would be utilised by EFSL for various purposes, including but not limited to, augment its long term resources, to fund growth and expansion, maintain capital adequacy, consolidation of its subsidiaries and general corporate purposes as per EFSL's growth and business related plans from time to time.
EFSL allotted 54,562,488 equity shares of face value of Rs. 1 each (Equity Shares) to eligible qualified institutional buyers (QIBs) at Rs. 280.00 per Equity Share, a discount of 1.80 percent or Rs. 5.14, to the QIP floor price of Rs. 285.14 per Equity Share, in accordance with the pricing formula provided under Regulation 85(1) of the Securities and Exchange Board of India (SEBI) (Issue of Capital and Disclosure Requirements) Regulations, 2009.
"Our fund raise has been received by marquee investors like CDPQ, Fidelity, Goldman Sachs, Nomura, HDFC Mutual Fund, Kotak and Birla MFs. We see this as an endorsement of our business model that uses both capital and talent vectors in growing surely and steadily. Investors in Edelweiss gain exposure to a diversified breadth of businesses serving both retail and corporate customers that ranges from retail and corporate credit, wealth management, asset management, capital markets to insurance," said Rashesh Shah, Chairman, Managing Director and CEO of EFSL.
The QIP saw subscription from foreign as well as domestic QIBs. In particular, Caisse de Depot et Placement du Quebec (CDPQ), the second-largest pension fund in Canada used the opportunity to get a stake in EFSL. It may be recalled that, CDPQ signed an agreement with EFSL to invest Rs. 5,000 crore in stressed assets and specialised corporate credit in India, over the next four years. CDPQ also acquired a 20 per cent equity stake in Edelweiss Asset Reconstruction Co, India's largest ARC.
Other marquee investors in the QIP included HDFC Mutual Fund, Kotak Mutual Fund and Birla Mutual Fund as well as existing shareholders like Goldman Sachs, Nomura, Fidelity, Steadview, GSAM, Halbis, GMO, DE Shaw and Amansa William Blair.
Since 2012, Edelweiss Financial Services has grown at a CAGR of 37 percent. During this same period, the balance sheet has grown at a CAGR of 26 percent, which highlights the non-linear profitability potential of our unique business model. The retail credit book has grown at a CAGR of 45 percent consisting principally of small ticket home loans and SME loans.
As of September 30, 2017, the total credit book was at Rs. 32,540 crore, of which 36 percent is in retail, 47 percent in corporate, and 17 percent in the distressed credit business. (ANI)