Rating Rationale
June 07, 2024 | Mumbai

Edelweiss Financial Services Limited

Ratings placed on 'Watch Negative'

 

Rating Action

Rs.300 Crore Long Term Principal Protected Market Linked Debentures

CRISIL PPMLD A+/Watch Negative (Placed on ‘Rating Watch with Negative Implications’)

Rs.914.36 Crore (Reduced from Rs.1000 Crore) Retail Bond&

CRISIL A+/Watch Negative (Placed on ‘Rating Watch with Negative Implications’)

Rs.850 Crore Non Convertible Debentures

CRISIL A+/Watch Negative (Placed on ‘Rating Watch with Negative Implications’)

Rs.1500 Crore Non Convertible Debentures&

CRISIL A+/Watch Negative (Placed on ‘Rating Watch with Negative Implications’)

Rs.500 Crore Commercial Paper

CRISIL A1+/Watch Negative (Placed on ‘Rating Watch with Negative Implications’)

Rs.2363.59 Crore (Reduced from Rs.2500 Crore) Non Convertible Debentures Aggregating&

CRISIL A+/Watch Negative (Placed on ‘Rating Watch with Negative Implications’)

& public issue

Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.

1 crore = 10 million   

Refer to annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings has placed its ‘CRISIL A+/CRISIL PPMLD A+/CRISIL A1+’ ratings on the debt instruments of Edelweiss Financial Services Limited (EFSL) on ‘Rating watch with Negative Implications’.

 

Ratings on Rs 222.05 crore of non-convertible debentures have been withdrawn (See Annexure 'Details of Rating Withdrawn' for details), as these are fully redeemed. CRISIL Ratings has also received independent confirmations for fully redeemed instruments. The withdrawal is in line with CRISIL Ratings’ withdrawal policy.

 

The rating action follows the material supervisory concerns raised by the Reserve Bank of India (RBI) via its press release on May 29, 2024, on ECL Finance Limited (ECLF) and Edelweiss Asset Reconstruction company Ltd (EARC).

 

The RBI has ordered ECLF to cease and desist, with immediate effect, from undertaking any structured transactions in respect of its wholesale exposures, other than repayment and/ or closure of accounts in its normal course of business. Separately EARC has been ordered to cease and desist from acquisition of financial assets including security receipts (SRs) and reorganising the existing SRs into senior and subordinate tranches.

 

CRISIL Ratings understands basis discussions with the management that RBI had shared its inspection observations with the companies in February 2024 and corrective steps on several matters have already been taken. This includes observations such as valuation differences, where there would be a financial implication- the required additional provisioning has been made in the March 2024 quarter and therefore is factored into fiscal 2024 results for both the companies. CRISIL Ratings also understand that all the AIF units held by the Edelweiss group with SRs as the underlying have been liquidated post the December 2023 RBI guideline pertaining to the investments made by NBFCs   in AIFs.

 

Furthermore, ECLF and EARC are continuously engaging with the regulator and are required to submit a board approved remedial action plan within three weeks and two weeks respectively, from the date of the order, as per the management.

 

With respect to the business and financial impact on ECLF, the company had discontinued the wholesale lending business as on 1st Jan 2024- its residual wholesale loan portfolio is low at Rs 396 crore as at March 31, 2024. However, the entity carries Rs ~3800 crore of SRs on its balance sheet. While structured transactions are no longer permitted, based on management’s view, there is no restriction on sell down. However, management plans to seek clarity from the regulator on whether these can be liquidated through means other than normal course of recovery.

 

With respect to EARC, the company has been focusing primarily on retail acquisitions.  This has also resulted in contraction in their SR assets under management to Rs 31,590 crore as on March 31, 2024, from Rs 37,500 crore as on March 31, 2023. Resultantly, revenues are largely derived from recoveries from EARC’s existing book with new retail business contribution to overall PAT at less than Rs 6 crore in fiscal 2024, of overall PAT of Rs 355 crore. Nevertheless, a prolonged restriction on acquisitions would have a bearing on EARC’s business risk profile.

 

Aside from the direct business and financial impact for both ECLF and EARC, these developments could have a second order impact on fund raising for the group given the confidence sensitive nature of the funding environment for NBFCs and ARCs. Although the group has been able to roll over Rs 450 crore of commercial paper and raise Rs 45 crore through structured product post the RBI supervisory action on May 29, 2024, traction in fund raising going forward will be key monitorable. Further, if the restrictions are not lifted for a prolonged period, there would be an impact on the business and financial risk profile, especially of EARC, which in turn would impact the group profitability given its sizeable contribution to the same.

 

As on May 29, 2024, the group had liquidity of Rs 2,502 crore of which Rs 1,560 crore was in the form of bank balances, fixed deposits and investments in mutual funds, Rs 838 crore in the form of exchange margin (unencumbered), Rs 20 crore as short-term loans and Rs 84 crore in the form of undrawn lines. This is expected to be sufficient to meet debt obligations and operating expenses for ~4 months, even assuming nil business inflows and no incremental fund raising. The group’s liquidity position is expected to be further supported by contractual receivables from the retail book and recoveries from wholesale exposures.

 

Additionally, the group also has divestment plans in pipeline of its stakes in Nuvama Group, housing finance business and alternate assets businesses, which act as additional cushion. Timing of these divestment initiatives will be crucial to meet the planned debt reduction by the group.

 

CRISIL Ratings will continue to closely monitor traction in fund raising, the company and group’s liquidity position, as well as await updates from the regulator on lifting of restrictions placed on the two companies. The watch will be resolved once greater clarity emerges on all these aspects.

 

The ratings continue to be supported by the group’s adequate capitalisation, and its diversified business profile with good market position in asset reconstruction and asset management businesses. Growth in retail (including MSME) lending has, however, been relatively slow. The ratings are constrained by lower-than-expected revival in core profitability, and continued high level of unprovided monitorable   portfolio.

Analytical Approach

CRISIL Ratings has combined the business and financial risk profiles of EFSL and its subsidiaries.  This is because these entities, collectively referred to as the Edelweiss group, have significant operational, financial and managerial linkages.

 

Please refer Annexure - List of entities consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description

Strengths:

  • Adequate capitalisation, supported by multiple capital raises

Edelweiss group has demonstrated its ability to raise capital from global investors across businesses, despite the tough macroeconomic environment. The group has raised Rs 4,400 crore since 2016 across lending, wealth management and asset management businesses. This has helped maintain the capital position, despite elevated credit costs and absorb the asset-side risks. The group’s networth stood at Rs 6309 crore as on March 31, 2024, as against Rs 8581 crore as on March 31, 2023 (Rs 8,537 crore as on March 31, 2022). The networth reduced as ~30% Nuvama’s networth was distributed to the shareholders of Edelweiss Financial Services Limited as part of the demerger.

 

The gearing stood at 3.2 times (excluding CBLO, gearing was 2.9 times) as on March 31, 2024, against 2.5 times (2.26 times) as on March 31, 2023 (2.6 times as on March 31, 2022, and 3.2 times as on March 31, 2021). With increased focus on fee-based businesses, and strategy to grow in credit business through an asset-light model, the incremental debt requirement will be low.  The group has plans to divest its remaining stake in Nuvama group, and fully or partly exit housing, alternate assets and general insurance businesses, which will further aid in unlocking capital and debt reduction.

 

  • Demonstrated ability to build significant competitive position across businesses

The Edelweiss group is a diversified financial services player, with presence in four verticals i.e. credit (wholesale and retail), insurance (life and general), asset management, and asset reconstruction. The group has attained leading positions in the alternate asset and asset reconstruction businesses and is focusing on building market position in other businesses too, which should lend greater stability to earnings over a period of time.

 

The asset management business comprises mutual fund and alternate asset businesses. The group is a leading player in the alternate asset segment and its mutual fund AUM has been growing steadily. The asset management AUM grew to Rs 1,81,700 crore as on March 31, 2024, from Rs 1,51,500 crore as on March 31, 2023.

 

In the distressed assets segment, Edelweiss Asset Reconstruction Company Limited (Edelweiss ARC) is the largest ARC in India, with total securities receipts managed at Rs 31,590 crore as on March 31, 2024 (Rs 37,100 crore and Rs 40,200 crore as on March 31, 2023, and March 31, 2022). From being largely corporate focused, the ARC has, in the recent past, started focusing on retail and micro, small and medium enterprises (MSME) segments. The share of retail is expected to grow over the medium term.

 

In the lending business, while the wholesale book is under run down, the group is focusing on growth in retail through the asset-light model. The key product offerings in the retail credit book would be mortgage and MSME loans. The group has entered into agreements with various co-lending partners for retail product offerings, which are large domestic and foreign banks, for both the priority and non-priority sector portfolios. Although the retail AUM picked up pace in fiscal 2024, the growth has been relatively slow, due to delay in operationalising the onboarding and underwriting process with the co-lending partners. The retail AUM grew to Rs 5368 crore as on March 31, 2024, from Rs 4879 crore as on March 31, 2023.

 

The group also houses the life and general insurance businesses, which are gaining scale and are expected to break even over the medium term.

 

However, with the rundown of wholesale credit, divestment of the wealth management business, and planned stake sale of the housing finance and general insurance businesses, the diversity in the business risk profile is a monitorable.

 

Weaknesses:

  • Subdued profitability for current size and scale considering presence in multiple businesses

Edelweiss Group’s profitability has been lower compared to other large, financial sector groups. However, most of the businesses have been reporting profit since the last quarter of fiscal 2021.

 

The group reported PAT of Rs 528 crore in fiscal 2024 (excluding any one-off items) as against PAT of Rs 406 crore in fiscal 2023. However, profitability in 2023 was supported by a one-off item of revaluation gains (and also accelerated provisions made basis the one-off gain), excluding which the profit would have been Rs 248 crore for fiscal 2023.Return on average assets (ROA) was 1.2% for fiscal 2024 against 0.9% for fiscal 2023 and 0.5% for fiscal 2023 and fiscal 2022. The group’s overall profitability is weighted down by losses in insurance businesses, however, ex insurance profit stood at Rs 808 crore for fiscal 2024 against Rs 730 crore for fiscal 2023 and Rs 523 crore for fiscal 2022.

 

Of the various businesses, the asset reconstruction and asset management businesses, mainly alternate assets, remain the largest contributors to overall profitability forming 70% of overall PAT (ex-insurance) for fiscal 2024. The profitability of the credit business has improved from the past levels with credit costs reducing, however remains muted with retail lending yet to gather pace. However, additional provisioning is likely to be required on the monitorable book based on the pace and extent of recovery from underlying assets. The insurance businesses are expected to breakeven only over the next 2-3 years. While the asset reconstruction and alternate assets businesses should continue to support profitability, the group’s ability to scale up the retail lending business while managing overall credit costs will be important and this remains a key monitorable.

 

  • Asset quality monitorable with elevated level of monitorable portfolio

The group’s overall gross loan book (excluding monitorable portfolio net off on-book gross stage III assets) stood at Rs 5537 crore as on March 31, 2024, against Rs 7,548 crore as on March 31, 2023, and Rs 10,502 crore as on March 31, 2022. Of this, retail on book stood at Rs 4,261 crore (Rs 3,795 crore and Rs 6,749 crore) and remaining was wholesale book.

 

The group has been consciously running down the wholesale portfolio through various modes. While recoveries have contributed to this, the reduction has been primarily due to sell-down to ARCs (both internal and external) and AIFs. Given the RBI restrictions, this process is likely to be slower than earlier.

 

Edelweiss group has retained risks and rewards on a large portion of this and hence, CRISIL Ratings tracks the monitorable portfolio to assess asset quality of the group. This includes gross stage III accounts in the lending book (Rs 720 crore), security receipts held by the group (including in EARC) pertaining to sell down (Rs 6852 crore) and loans sold down to AIFs (Rs 1,742 crore). Overall monitorable portfolio stood at Rs 9,315 crore as on March 31, 2024. While the monitorable portfolio has reduced from Rs 12,097 crore as on March 31, 2022(Rs 11,383 crore as on March 31, 2021), it remains elevated. CRISIL Ratings notes that although the majority of this monitorable portfolio is on-book exposure of Edelweiss group, some part pertains to exposure of external ARC or AIF wherein the group has extended a put option.

 

The group has made provisions against the monitorable portfolio, and therefore, the net monitorable portfolio stood at Rs 6,018 core as on March 31, 2024. Basis management estimates, there is a reasonable level of collateral cover on most of this portfolio.

 

The overall gross stage III assets in the lending business stood at Rs 720 crore (13% of loans) as on March 31, 2024, against Rs 794 crore (10.5%) as on March 31, 2023 (Rs 930 crore ( 8.9%) as on March 31, 2022, and Rs  1,601 crore ( 10.9%) as on March 31, 2021). Retail book gross stage III was Rs 78 crore (1.84%) as on March 31, 2024, against Rs 124 crore (3.3%) and Rs 182 crore (2.7%) as on March 31, 2023, and March 31, 2022.

 

However, any challenges in effecting recoveries as per plan could necessitate higher provisioning and put pressure on profitability and hence, this remains a key monitorable for the rating.

Liquidity: Adequate

As on May 29, 2024, the group had liquidity of Rs 2,502 crore of which Rs 1,560 crore was in the form of bank balances, fixed deposits and investments in mutual funds, Rs 838 crore in the form of exchange margin (unencumbered), Rs 20 crore as short-term loans and Rs 84 crore in the form of undrawn lines. This is expected to be sufficient to meet debt obligations and operating expenses for ~4 months, even assuming nil business inflows and no incremental fund raising. The group’s liquidity position is expected to be further supported by contractual receivables from the retail book and recoveries from wholesale exposures.

 

ESG:

CRISIL Ratings believes that EFSL’s Environment, Social, and Governance (ESG) profile supports its credit risk profile.

 

The ESG profile of financial institutions typically factors in governance as a key differentiator between them. The sector has reasonable social impact because of its substantial employee and customer base, and it can play a key role in promoting financial inclusion. While the sector does not have a direct adverse environmental impact, the lending decisions may have a bearing on the environment and other sustainability related factors.

 

EFSL group has an evolving focus on strengthening various aspects of its ESG profile.

 

EFSL group’s key ESG highlights:

  • At the standalone level, EEFL's total water consumption and greenhouse gas(GHG) emissions have reduced by 55% and ~10%, respectively, from its fiscal 2020 baseline. This covers three offices which house nearly one-third of the group's total workforce.
  • The company has installed a solar power plant of 1.2 megawatts (MW), which offset 125 tons of CO2 in fiscal 2023.
  • Over 50% of the housing loans financed by the Edelweiss group in fiscal 2023 were in the affordable housing segment, which has a positive social impact.
  • Company's governance structure is characterized by 50% of its board being independent directors, ~33%-woman board directors, and extensive financial disclosures.
  • The recent supervisory action against material subsidiaries of the company (ECL Finance Ltd and Edelweiss Asset Reconstruction Company Ltd) by the RBI, and impact of the same on the group is a key monitorable from a governance point of view.

 

There is growing importance of ESG among investors and lenders. EFSL group’s commitment to ESG will play a key role in enhancing stakeholder confidence, given the presence of foreign investors. 

Rating Sensitivity factors

Upward factors

  • Substantial improvement in overall profitability of the group
  • Significant scale up in the retail lending business with sustained return on managed assets of around 2.5%
  • Sharp organic reduction in the monitorable portfolio

 

Downward factors

  • Delay in lifting of restrictions by regulator
  • Continued pressure on profitability, with profits going below 2024 levels i.e. lower than Rs 528 crore.
  • Funding access challenges with limited fundraising at optimal costs by the group
  • Slower traction in resolution of monitorable portfolio

About the Company

EFSL was incorporated in 1995 as Edelweiss Capital Ltd. The company, on standalone basis, is primarily engaged in investment banking services and provides development, managerial and financial support to group entities.

 

On standalone basis, EFSL’s reported networth stood at Rs 5,462.85 crore as on March 31, 2024. The company reported PAT of Rs 695 crore on total income of Rs 701 crore in fiscal 2024, as against Rs 2,388 crore on total income (net off interest exp) of Rs 2,786 crore in fiscal 2023.

About the Group

The Edelweiss group comprised 28 subsidiaries and associates as on March 31, 2024. The number of companies has come down from 74 as on March 31, 2016, because of multiple factors such as sale, windup and merger among others. The group had 293 offices (including 10 international offices in 6 locations) in around 136 cities as on March 31, 2024. Furthermore, as part of streamlining its operating structure, the group has restructured the businesses into four verticals namely credit, insurance, asset management and asset reconstruction.

 

The group is present across various financial services businesses, including loans to individuals, mortgage finance - loans against property and small-ticket housing loans, MSME finance, alternative and domestic asset management, and life and general insurance. In addition, the Balance sheet Management Unit (BMU) focuses on liquidity and asset-liability management.

 

On a consolidated basis, the group reported PAT of Rs 528 crore on a total income (net off interest expense) of Rs 6,815 crore for fiscal 2024, as against PAT of Rs 405 crore on a total income of Rs 6058 crore for fiscal 2023.

Key Financial Indicators: EFSL (consolidated)

As on/for the period ended

 

March 2024

March 2023

March 2022

Total assets

Rs crore

42920

44,064

43,279

Total income net off interest expense

Rs crore

6815

6,058

4,320

PAT

Rs crore

528

406

212

Gross stage III assets^

Rs crore

720

794

930

Gross stage III assets

%

13

10.5

7.4

Net stage III assets

Rs crore

125

156

201

Net stage III assets

%

2.6

2.1

1.1

Gearing

Times

3.2

2.4

2.5

Return on assets

%

1.2

0.9

0.5

^refers to gross stage III of the on balance sheet loan book. The reported gross stage III assets as per annual report is Rs 13,155 crore as on March 31, 2023, and Rs 12,368 crore as on March 31, 2022. Net Stage III was Rs 8313 crore and Rs 8681 crore respectively. These include stage III assets in EARC on monitorable book sold down by ECL Finance, interest accrued on non-performing assets and stage III assets held by group entities other than NBFCs on trade and general-purpose advances.

Any other information: Not applicable

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN

Name of Instrument

Date of Allotment

Coupon Rate (%)

Maturity

Date

Issue Size (INR.Crs)

Complexity Level

Rating with Outlook

INE532F07BM3

Non-Convertible Debentures*

8-Jan-2021

9.39%

8-Jan-2026

55.9

Simple

CRISIL A+/Watch Negative

INE532F07BN1

Non-Convertible Debentures*

8-Jan-2021

9.80%

8-Jan-2026

34.21

Simple

CRISIL A+/Watch Negative

INE532F07BO9

Non-Convertible Debentures*

8-Jan-2021

Zero Coupon

8-Jan-2026

10.8

Simple

CRISIL A+/Watch Negative

INE532F07BP6

Non-Convertible Debentures*

8-Jan-2021

9.53%

8-Jan-2031

18.07

Simple

CRISIL A+/Watch Negative

INE532F07BQ4

Non-Convertible Debentures*

8-Jan-2021

9.95%

8-Jan-2031

7.13

Simple

CRISIL A+/Watch Negative

INE532F07BX0

Non-Convertible Debentures*

29-Apr-2021

9.16%

29-Apr-2026

81.92

Simple

CRISIL A+/Watch Negative

INE532F07BY8

Non-Convertible Debentures*

29-Apr-2021

9.55%

29-Apr-2026

30.11

Simple

CRISIL A+/Watch Negative

INE532F07BZ5

Non-Convertible Debentures*

29-Apr-2021

Zero Coupon

29-Apr-2026

9.3

Simple

CRISIL A+/Watch Negative

INE532F07CA6

Non-Convertible Debentures*

29-Apr-2021

9.30%

29-Apr-2031

19.13

Simple

CRISIL A+/Watch Negative

INE532F07CB4

Non-Convertible Debentures*

29-Apr-2021

9.70%

29-Apr-2031

15.72

Simple

CRISIL A+/Watch Negative

INE532F07EA2

Non-Convertible Debentures*

21-Jul-2023

8.95%

21-Jul-2025

10.02

Simple

CRISIL A+/Watch Negative

INE532F07EB0

Non-Convertible Debentures*

21-Jul-2023

Zero Coupon

21-Jul-2025

5.71

Simple

CRISIL A+/Watch Negative

INE532F07EC8

Non-Convertible Debentures*

21-Jul-2023

9.20%

21-Jul-2026

36.61

Simple

CRISIL A+/Watch Negative

INE532F07ED6

Non-Convertible Debentures*

21-Jul-2023

9.60%

21-Jul-2026

29.71

Simple

CRISIL A+/Watch Negative

INE532F07EE4

Non-Convertible Debentures*

21-Jul-2023

Zero Coupon

21-Jul-2026

15.15

Simple

CRISIL A+/Watch Negative

INE532F07EG9

Non-Convertible Debentures*

21-Jul-2023

9.67%

21-Jul-2028

78.51

Simple

CRISIL A+/Watch Negative

INE532F07EH7

Non-Convertible Debentures*

21-Jul-2023

10.10%

21-Jul-2028

28.06

Simple

CRISIL A+/Watch Negative

INE532F07EF1

Non-Convertible Debentures*

21-Jul-2023

Zero Coupon

21-Jul-2028

8.63

Simple

CRISIL A+/Watch Negative

INE532F07EI5

Non-Convertible Debentures*

21-Jul-2023

10.00%

21-Jul-2033

34.43

Simple

CRISIL A+/Watch Negative

INE532F07DZ1

Non-Convertible Debentures*

21-Jul-2023

10.45%

21-Jul-2033

11.17

Simple

CRISIL A+/Watch Negative

INE532F07DQ0

Non-Convertible Debentures*

27-Apr-2023

8.95%

27-Apr-2025

13.3

Simple

CRISIL A+/Watch Negative

INE532F07DR8

Non-Convertible Debentures*

27-Apr-2023

Zero Coupon

27-Apr-2025

7.8

Simple

CRISIL A+/Watch Negative

INE532F07DP2

Non-Convertible Debentures*

27-Apr-2023

9.20%

27-Apr-2026

38.1

Simple

CRISIL A+/Watch Negative

INE532F07DS6

Non-Convertible Debentures*

27-Apr-2023

9.60%

27-Apr-2026

28.1

Simple

CRISIL A+/Watch Negative

INE532F07DU2

Non-Convertible Debentures*

27-Apr-2023

Zero Coupon

27-Apr-2026

10.7

Simple

CRISIL A+/Watch Negative

INE532F07DT4

Non-Convertible Debentures*

27-Apr-2023

9.67%

27-Apr-2028

68.7

Simple

CRISIL A+/Watch Negative

INE532F07DV0

Non-Convertible Debentures*

27-Apr-2023

10.10%

27-Apr-2028

29.8

Simple

CRISIL A+/Watch Negative

INE532F07DW8

Non-Convertible Debentures*

27-Apr-2023

Zero Coupon

27-Apr-2028

9.9

Simple

CRISIL A+/Watch Negative

INE532F07DX6

Non-Convertible Debentures*

27-Apr-2023

10.00%

27-Apr-2033

34.6

Simple

CRISIL A+/Watch Negative

INE532F07DY4

Non-Convertible Debentures*

27-Apr-2023

10.45%

27-Apr-2033

12.2

Simple

CRISIL A+/Watch Negative

INE532F07DF3

Non-Convertible Debentures*

20-Jan-2023

9.00%

20-Jan-2025

20

Simple

CRISIL A+/Watch Negative

INE532F07DO5

Non-Convertible Debentures*

20-Jan-2023

Zero Interest

20-Jan-2025

9.9

Simple

CRISIL A+/Watch Negative

INE532F07DM9

Non-Convertible Debentures*

20-Jan-2023

9.20%

20-Jan-2026

54.5

Simple

CRISIL A+/Watch Negative

INE532F07DN7

Non-Convertible Debentures*

20-Jan-2023

9.60%

20-Jan-2026

49.8

Simple

CRISIL A+/Watch Negative

INE532F07DL1

Non-Convertible Debentures*

20-Jan-2023

Zero Interest

20-Jan-2026

20.2

Simple

CRISIL A+/Watch Negative

INE532F07DK3

Non-Convertible Debentures*

20-Jan-2023

9.67%

20-Jan-2028

119.8

Simple

CRISIL A+/Watch Negative

INE532F07DJ5

Non-Convertible Debentures*

20-Jan-2023

10.10%

20-Jan-2028

36.7

Simple

CRISIL A+/Watch Negative

INE532F07DG1

Non-Convertible Debentures*

20-Jan-2023

Zero Interest

20-Jan-2028

15.5

Simple

CRISIL A+/Watch Negative

INE532F07DH9

Non-Convertible Debentures*

20-Jan-2023

10.00%

20-Jan-2033

47.2

Simple

CRISIL A+/Watch Negative

INE532F07DI7

Non-Convertible Debentures*

20-Jan-2023

10.45%

20-Jan-2033

23.8

Simple

CRISIL A+/Watch Negative

INE532F07ET2

Non-Convertible Debentures*

29-Jan-2024

8.95%

29-Jan-2026

27.6

Simple

CRISIL A+/Watch Negative

INE532F07EU0

Non-Convertible Debentures*

29-Jan-2024

9.20%

29-Jan-2027

29.8

Simple

CRISIL A+/Watch Negative

INE532F07EV8

Non-Convertible Debentures*

29-Jan-2024

Zero Interest

29-Jan-2026

7.7

Simple

CRISIL A+/Watch Negative

INE532F07EW6

Non-Convertible Debentures*

29-Jan-2024

9.60%

29-Jan-2027

33.7

Simple

CRISIL A+/Watch Negative

INE532F07EX4

Non-Convertible Debentures*

29-Jan-2024

Zero Interest

29-Jan-2027

11.0

Simple

CRISIL A+/Watch Negative

INE532F07EY2

Non-Convertible Debentures*

29-Jan-2024

9.67%

29-Jan-2029

44.1

Simple

CRISIL A+/Watch Negative

INE532F07EZ9

Non-Convertible Debentures*

29-Jan-2024

10.10%

29-Jan-2029

24.1

Simple

CRISIL A+/Watch Negative

INE532F07FA9

Non-Convertible Debentures*

29-Jan-2024

Zero Interest

29-Jan-2029

5.1

Simple

CRISIL A+/Watch Negative

INE532F07FB7

Non-Convertible Debentures*

29-Jan-2024

10.00%

29-Jan-2034

21.8

Simple

CRISIL A+/Watch Negative

INE532F07FC5

Non-Convertible Debentures*

29-Jan-2024

10.45%

29-Jan-2034

9.1

Simple

CRISIL A+/Watch Negative

INE532F07FD3

Non-Convertible Debentures*

29-Apr-2024

10.00%

29-Apr-2034

14.2

Simple

CRISIL A+/Watch Negative

INE532F07FE1

Non-Convertible Debentures*

29-Apr-2024

Zero Interest

29-Apr-2026

3.0

Simple

CRISIL A+/Watch Negative

INE532F07FF8

Non-Convertible Debentures*

29-Apr-2024

9.00%

29-Apr-2026

35.6

Simple

CRISIL A+/Watch Negative

INE532F07FG6

Non-Convertible Debentures*

29-Apr-2024

10.45%

29-Apr-2034

2.7

Simple

CRISIL A+/Watch Negative

INE532F07FH4

Non-Convertible Debentures*

29-Apr-2024

Zero Interest

29-Apr-2029

4.6

Simple

CRISIL A+/Watch Negative

INE532F07FI2

Non-Convertible Debentures*

29-Apr-2024

10.10%

29-Apr-2029

4.7

Simple

CRISIL A+/Watch Negative

INE532F07FJ0

Non-Convertible Debentures*

29-Apr-2024

10.45%

29-Apr-2034

7.8

Simple

CRISIL A+/Watch Negative

INE532F07FK8

Non-Convertible Debentures*

29-Apr-2024

9.20%

29-Apr-2027

27.1

Simple

CRISIL A+/Watch Negative

INE532F07FL6

Non-Convertible Debentures*

29-Apr-2024

9.60%

29-Apr-2027

25.3

Simple

CRISIL A+/Watch Negative

INE532F07FM4

Non-Convertible Debentures*

29-Apr-2024

Zero Interest

29-Apr-2027

6.1

Simple

CRISIL A+/Watch Negative

INE532F07FN2

Non-Convertible Debentures*

29-Apr-2024

9.67%

29-Apr-2029

29.1

Simple

CRISIL A+/Watch Negative

INE532F07FO0

Non-Convertible Debentures*

29-Apr-2024

10.10%

29-Apr-2029

14.5

Simple

CRISIL A+/Watch Negative

NA

Non-Convertible Debentures*^

NA

NA

NA

2284.0

Simple

CRISIL A+/Watch Negative

INE532F07CN9

Retail Bonds*

28-Dec-2021

8.75%

28-Dec-2024

83.39

Simple

CRISIL A+/Watch Negative

INE532F07CO7

Retail Bonds*

28-Dec-2021

9.10%

28-Dec-2024

60.56

Simple

CRISIL A+/Watch Negative

INE532F07CP4

Retail Bonds*

28-Dec-2021

Zero Interest

28-Dec-2024

16.61

Simple

CRISIL A+/Watch Negative

INE532F07CQ2

Retail Bonds*

28-Dec-2021

9.15%

28-Dec-2026

77.76

Simple

CRISIL A+/Watch Negative

INE532F07CR0

Retail Bonds*

28-Dec-2021

9.55%

28-Dec-2026

75.8

Simple

CRISIL A+/Watch Negative

INE532F07CS8

Retail Bonds*

28-Dec-2021

Zero Interest

28-Dec-2026

12.17

Simple

CRISIL A+/Watch Negative

INE532F07CT6

Retail Bonds*

28-Dec-2021

9.30%

28-Dec-2031

31.1

Simple

CRISIL A+/Watch Negative

INE532F07CU4

Retail Bonds*

28-Dec-2021

9.70%

28-Dec-2031

13.22

Simple

CRISIL A+/Watch Negative

INE532F07CV2

Retail Bonds*

20-Oct-2022

8.85%

20-Oct-2024

22

Simple

CRISIL A+/Watch Negative

INE532F07CW0

Retail Bonds*

20-Oct-2022

Zero Interest

20-Oct-2024

11

Simple

CRISIL A+/Watch Negative

INE532F07CX8

Retail Bonds*

20-Oct-2022

8.90%

20-Oct-2025

58

Simple

CRISIL A+/Watch Negative

INE532F07CY6

Retail Bonds*

20-Oct-2022

9.25%

20-Oct-2025

42

Simple

CRISIL A+/Watch Negative

INE532F07CZ3

Retail Bonds*

20-Oct-2022

Zero Interest

20-Oct-2025

23

Simple

CRISIL A+/Watch Negative

INE532F07DB2

Retail Bonds*

20-Oct-2022

9.35%

20-Oct-2027

122

Simple

CRISIL A+/Watch Negative

INE532F07DC0

Retail Bonds*

20-Oct-2022

9.75%

20-Oct-2027

32

Simple

CRISIL A+/Watch Negative

INE532F07DA4

Retail Bonds*

20-Oct-2022

Zero Interest

20-Oct-2027

10

Simple

CRISIL A+/Watch Negative

INE532F07DD8

Retail Bonds*

20-Oct-2022

9.65%

20-Oct-2032

26

Simple

CRISIL A+/Watch Negative

INE532F07DE6

Retail Bonds*

20-Oct-2022

10.10%

20-Oct-2032

19

Simple

CRISIL A+/Watch Negative

INE532F07EJ3

Retail Bonds*

26-Oct-2023

8.95%

26-Oct-2026

9.77

Simple

CRISIL A+/Watch Negative

INE532F07EQ8

Retail Bonds*

26-Oct-2023

9.20%

26-Oct-2026

28.75

Simple

CRISIL A+/Watch Negative

INE532F07EP0

Retail Bonds*

26-Oct-2023

9.60%

26-Oct-2026

33.86

Simple

CRISIL A+/Watch Negative

INE532F07EO3

Retail Bonds*

26-Oct-2023

9.67%

26-Oct-2028

40.35

Simple

CRISIL A+/Watch Negative

INE532F07EM7

Retail Bonds*

26-Oct-2023

10.10%

26-Oct-2028

17.95

Simple

CRISIL A+/Watch Negative

INE532F07EL9

Retail Bonds*

26-Oct-2023

10.00%

26-Oct-2033

18.73

Simple

CRISIL A+/Watch Negative

INE532F07EK1

Retail Bonds*

26-Oct-2023

10.45%

26-Oct-2033

8.48

Simple

CRISIL A+/Watch Negative

INE532F07ER6

Retail Bonds*

26-Oct-2023

Zero Coupon

26-Oct-2025

3.31

Simple

CRISIL A+/Watch Negative

INE532F07ES4

Retail Bonds*

26-Oct-2023

Zero Coupon

26-Oct-2026

8.72

Simple

CRISIL A+/Watch Negative

INE532F07EN5

Retail Bonds*

26-Oct-2023

Zero Coupon

26-Oct-2028

6.21

Simple

CRISIL A+/Watch Negative

NA

Retail Bond^*

NA

NA

NA

2.62

Simple

CRISIL A+/Watch Negative

NA

Non-Convertible Debentures^

NA

NA

NA

850

Simple

CRISIL A+/Watch Negative

NA

Commercial Paper Programme

NA

NA

7-365 days

500

Simple

CRISIL A1+/Watch Negative

NA

Long Term Principal Protected Market Linked Debentures^

NA

NA

NA

300

Highly Complex

CRISIL PPMLD A+/Watch Negative

^yet to be issue

*public issue

 

Annexure - Details of Rating Withdrawn

 

ISIN Name of Instrument Date of Allotment Coupon
Rate (%)
Maturity
Date
Issue Size
(INR.Crs)
Complexity
Level
Rating with Outlook
INE532F07BK7 Non-Convertible Debentures* 08-Jan-21 9.35% 08-Jan-24 58.4 Simple Withdrawn 
INE532F07BL5 Non-Convertible Debentures* 08-Jan-21 Zero Coupon 08-Jan-24 15.49 Simple Withdrawn 
INE532F07BV4 Non-Convertible Debentures* 29-Apr-21 9.10% 29-Apr-24 50.02 Simple Withdrawn 
INE532F07BW2 Non-Convertible Debentures* 29-Apr-21 Zero Coupon 29-Apr-24 12.5 Simple Withdrawn 
INE532F07CL3 Retail Bonds* 28-Dec-21 8.75% 28-Dec-23 73.7 Simple Withdrawn 
INE532F07CM1 Retail Bonds* 28-Dec-21 zero interest 28-Dec-23 11.94 Simple Withdrawn

*public issue

Annexure – List of entities consolidated

Names of Entities Consolidated

Extent of Consolidation

Rationale for Consolidation

ECL Finance Ltd

Full

Subsidiary

Edelcap Securities Ltd

Full

Subsidiary

Edelweiss Asset Management Ltd

Full

Subsidiary

ECap Securities and Investments Limited

(Formerly known as ECap Equities Limited)

Full

Subsidiary

Edelweiss Trusteeship Company Ltd

Full

Subsidiary

Nido Home Finance Limited (formerly known

as Edelweiss Housing Finance Ltd)

Full

Subsidiary

Edelweiss Investment Adviser Ltd

Full

Subsidiary

ECap Equities Limited (formerly known as Edel Land Limited)

Full

Subsidiary

Edelweiss Investment Advisors Ltd

Full

Subsidiary

Edelweiss Rural & Corporate Services Ltd

Full

Subsidiary

Comtrade Commodities Services Limited (Formerly known as Edelweiss Comtrade Ltd)

Full

Subsidiary

Edel Finance Company Ltd

Full

Subsidiary

Edelweiss Retail Finance Ltd

Full

Subsidiary

Edelweiss Multi Strategy Fund Advisors LLP

Full

Subsidiary

Zuno General Insurance Limited (formerly

known as Edelweiss General Insurance Company Ltd)

Full

Subsidiary

Edelweiss Securities and Investment Pvt Ltd

Full

Subsidiary

EC International Ltd

Full

Subsidiary

Nuvama Investment Advisors LLC (formerly

known as EAAA LLC)

Full

Subsidiary

Edelweiss Alternative Asset Advisors Pte. Ltd

Full

Subsidiary

Edelweiss International (Singapore) Pte Ltd

Full

Subsidiary

EdelGive Foundation

Full

Subsidiary

Edelweiss Alternative Asset Advisors Ltd

Full

Subsidiary

Edelweiss Private Equity Tech Fund

Full

Subsidiary

Edelweiss Value and Growth Fund

Full

Subsidiary

Edelweiss Asset Reconstruction Company Ltd

Full

Subsidiary

Edelweiss Tokio Life Insurance Company Ltd

Full

Subsidiary

Allium Finance Private Ltd

Full

Subsidiary

Edelweiss Global Wealth Management Limited

Full

Subsidiary

Edelweiss Capital Services Ltd

Full

Subsidiary

India Credit Investment Fund II

Full

Subsidiary

Sekura India Management Ltd

Full

Subsidiary

Edelweiss Retail Assets Managers Ltd

Full

Subsidiary

 

Annexure - Rating History for last 3 Years
  Current 2024 (History) 2023  2022  2021  Start of 2021
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Commercial Paper ST 500.0 CRISIL A1+/Watch Negative   -- 18-12-23 CRISIL A1+ 01-12-22 CRISIL A1+ 22-10-21 CRISIL A1+ CRISIL A1+
      --   -- 31-08-23 CRISIL A1+ 21-10-22 CRISIL A1+ 09-09-21 CRISIL A1+ --
      --   -- 22-06-23 CRISIL A1+ 04-03-22 CRISIL A1+ 27-08-21 CRISIL A1+ --
      --   -- 03-02-23 CRISIL A1+   -- 02-08-21 CRISIL A1+ --
Non Convertible Debentures LT 4713.59 CRISIL A+/Watch Negative   -- 18-12-23 CRISIL A+/Stable 01-12-22 CRISIL AA-/Negative 22-10-21 CRISIL AA-/Negative --
      --   -- 31-08-23 CRISIL AA-/Negative 21-10-22 CRISIL AA-/Negative 09-09-21 CRISIL AA-/Negative --
      --   -- 22-06-23 CRISIL AA-/Negative 04-03-22 CRISIL AA-/Negative   -- --
      --   -- 03-02-23 CRISIL AA-/Negative   --   -- --
Retail Bond LT 914.36 CRISIL A+/Watch Negative   -- 18-12-23 CRISIL A+/Stable 01-12-22 CRISIL AA-/Negative 22-10-21 CRISIL AA-/Negative --
      --   -- 31-08-23 CRISIL AA-/Negative 21-10-22 CRISIL AA-/Negative 09-09-21 Withdrawn --
      --   -- 22-06-23 CRISIL AA-/Negative 04-03-22 CRISIL AA-/Negative 27-08-21 CRISIL AA-/Negative --
      --   -- 03-02-23 CRISIL AA-/Negative   -- 02-08-21 CRISIL AA-/Negative --
Long Term Principal Protected Market Linked Debentures LT 300.0 CRISIL PPMLD A+/Watch Negative   -- 18-12-23 CRISIL PPMLD A+/Stable 01-12-22 CRISIL PPMLD AA- r /Negative 22-10-21 CRISIL PPMLD AA- r /Negative --
      --   -- 31-08-23 CRISIL PPMLD AA-/Negative 21-10-22 CRISIL PPMLD AA- r /Negative 09-09-21 CRISIL PPMLD AA- r /Negative --
      --   -- 22-06-23 CRISIL PPMLD AA-/Negative 04-03-22 CRISIL PPMLD AA- r /Negative 27-08-21 CRISIL PPMLD AA- r /Negative --
      --   -- 03-02-23 CRISIL PPMLD AA-/Negative   --   -- --
All amounts are in Rs.Cr.
 
 

                                                                          

Criteria Details
Links to related criteria
Rating Criteria for Finance Companies
CRISILs Criteria for rating short term debt
CRISILs Criteria for Consolidation

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