IFAs can get brokerage of up to 2.05% on Edelweiss Finance non-convertible debentures (NCDs) depending on the category of investors and holding tenure.
The company plans to raise funds up to Rs.500 crore with an option to raise an additional Rs.1500 crore through a public issue of secured redeemable NCDs. The company is offering an attractive yield ranging from 9.45% to 9.85% per annum. The NCDs also offer a tenure varying from three to 10 years, with an option of monthly, annual and cumulative interest payouts.
The issue will open for subscription on July 24 and close on August 16, 2018.
The commission structure on Edelweiss Finance NCD varies marginally with the date of application. So, for the first three days of issues i.e. from July 24 to July 26, you can earn a commission of 1.55%, 1.80% and 2.05 % for three, five and 10 years, respectively if the application size is up to Rs.10 lakh i.e. retail investors. Similarly, for the application size exceeding Rs.10 lakh i.e. HNIs, you can get a commission of 1.30%, 1.55 % and 1.80% for three, five and 10 years, respectively.
Similarly, from fourth day onwards, you will get up to 1.95% and 1.70% for retail and HNIs applications, respectively for 10 year NCD. Remember that the commission amount will exclude GST.
Here is the table that will help you understand the tentative brokerage structure.
|
For retail investors |
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|
Date of application |
10 years |
5 years |
3 years |
|
July 24 - July 26 |
2.05% |
1.80% |
1.55% |
|
July 27 onwards |
1.95% |
1.70% |
1.45% |
|
HNIs |
|||
|
Date of application |
10 years |
5 years |
3 years |
|
July 24 - July 26 |
1.80% |
1.55% |
1.30% |
|
July 27 onwards |
1.70% |
1.45% |
1.20% |
In addition, you will get a special incentive of Rs.50 per application if you go online.
CRISIL and ICRA have assigned Edelweiss Finance a rating of AA/Stable (Double A).
|
Effective yield pre tax |
|||
|
Tenure |
10 years - monthly and annually |
5 years - monthly, annually and cumulative |
3 years - monthly, annually and cumulative |
|
Tentative yield |
9.85% |
9.65% |
9.45% |
