SREI Infra NCD Issue Opens on Monday | 19 Aug 2019

SREI Infra NCD Issue Opens on Monday | 19 Aug 2019

SREI’s New NCD August 2019

SREI Infrastructure Finance Limited is one of India’s leading holistic institutions, and other innovative solutions sector. The company has announced it’s secured NCDs in Tranche-1 worth of Rs 100 crores. SREI Infra NCD will be opened for subscription on Monday on 19th Aug 2019. It will close on 18 September.

Basic Details of SREI Infra NCD

The company has defined other details of the NCD in its draft Prospectus. Such as Coupon rates, Retain over-subscription limits, Objectives of the issue and other information. This high-interest NCD will attract Short Term and Long Term Investors.

The issue is available in 10 series. The issue included ten series that come with a fixed period of 13 months, 3 years, and 5 years. This Secured NCD offers Rs 100 crore with an option of retaining an over-subscription of Rs 400 crore. SREI Equipment finance is a subsidiary of SREI Infrastructure Finance. The Face value of the NCD bond is Rs 1000.

Minimum Investment

One will need to invest a minimum of 10 bonds. Mean, invest a minimum of Rs 10,000 multiples of 1 bond. It offers monthly, yearly, and on maturity based payable options to the investors. Coupon interest rates are ranged between 9.88% to 10.65 per year. Yield coupon rates between 10.01% to 10.69 percent.

All categories of investors are eligible to apply for this secured NCD.

The previous Public NCD issues holders, Equity shareholders of SREI infrastructure Finance Ltd, Senior Citizens, of Existing Employees of SREI Group, On estimate date of allotment and Applying in a series of 2, 3, 5, 6, 8, 9 shall get additional of incentive e of 0.25% p.a.

Note: NRI’s cannot apply to this NCD subscription.

Karvy Investor Services and SMC Capital will Lead Managers to the Tranche I NCD. Srei Infra NCD has proposed to be listed on BSE. These NCDs are liquid investments.

Objectives of SREI Infra NCD

SREI Equipment NCD said that the money raised from this issue will utilize Up to 75 percent of net proceeds for lending and repayment of loans. The remaining 25 percent of net proceeds will utilize for General corporate purposes.

Credit Ratings for NCD

The SREI Infra’s NCDs have been rated by BWR as BWR AA / Outlook Negative and ACUTE as ACUTE AA-.

Coupon Rates of SREI Infra NCD

 Series  Category  Tenure  Interest Payment  Coupon Rate (Interest)  Effective Yield  Maturity Value
I  Secured  13 Months  Cumulative  NA  10.01%  1,109
II 2 Yrs Quarterly 9.88%  10.24% 1000
III Annual 10.25%  10.37% 1000
IV Cumulative NA 10.26% 1,216
V 3 Yrs Monthly 9.95%  10.41% 1000
VI Annual 10.40%  10.48% 1000
VII Cumulative NA  10.40% 1,346
VIII 5 Yrs Monthly 10.15%  10.62% 1000
IX Annual 10.65%  10.69% 1000
X Cumulative NA  10.66% 1,660

NCDs Offered

The issue reserved for all categories of investors.

Institutional Investors – 20 %

Non-Institutional Investors – 20 percent

Retail Investors – 60 percent

About the Company:

SREI Infrastructure Finance Limited is India’s leading financiers in the construction, mining, and allied equipment sector. Srei equipment groups provide equipment financing solutions to the customers. They also offered loans for New and used equipment and leases.

Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Please read the offer document carefully before investing.

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