Edelweiss Financial Services Limited

The company on a standalone basis is primarily engaged in investment banking services and provides development, managerial and financial support to the businesses of the Edelweiss group entities. The Edelweiss Group offers a range of products and services, spanning varied asset classes and diversified consumer segments. The businesses of Edelweiss are organised around 8 broad lines –housing finance, NBFC, Wealth management & Mutual Funds, Alternatives, Life and General insurance and Asset Reconstruction.

Over the years, the Edelweiss group has established a presence across major verticals in financial services business-like asset management, insurance, asset reconstruction and wealth management. The group comprises 28 subsidiaries as of March 31, 2023. The total income of the company was ₹ 8,632.59 crs for the year March 31, 2023, and ₹ 7,212.59 crs for the year March 31, 2022, on a consolidated basis. The company earned profit of ₹ 405.56 crs for the year ended March 31, 2023, and ₹ 212.07 crs for the year ended March 31, 2022, on a consolidated basis. he holding of Edelweiss group is described in the chart below:

(As per latest available annual report & prospectus)

Edelweiss Financial Services Limited (EFSL) has a strong presence in PAN India, with 233 offices serving over 5 million clients. In addition EFSL also has international presence in places like New York, Mauritius, Dubai, Hongkong, London etc.

SME Loan: Offers loans to SME Enterprises from 3 lakh to 25 crore, with an Loan to Value (LTV) of up to 125%. Their products details are mentioned below:

• Unsecured Business Loan: To meet immediate requirements they offer loan amount from 3 lakh to 50 lakh, with a tenure of up to 4 years
• Equipment Loan: Offer machinery loan to upgrade, improve or replace equipment meant for manufacturing. The loan amount ranges from 5 lakh to 2.5 crore with a tenure of up to 5 years
• Secured Loan: Offer loan against property for purchase of new property for a loan amount of up to 25 crore with a tenure of up to 15 years and an LTV up to 125%

Loan Against Property: The company mortgages your property for you to raise finance of up to 120% of market value of the asset and a loan amount of up to 25 crore with tenure of up to 15 years.

Domestic Credit Rating for past 3 years by:

(₹ in Cr)

1. Adequate capitalisation with multiple capital raises
2. Diversified businesses across various financial services
3. Comfortable asset quality with GNPAs at 2.01% and NNPA at 1.36% as of March 2023
4. Reduction of exposure to real estate financing

Low profitability at the consolidated level
Inconsistent trend in income at the consolidated level
Exposure to real estate (risky asset class) in the wholesale loan book
Rating downgrades by CARE in the last 3 years