Tuesday, April 30, 2019

SREI Infrastructure Finance Limited NCD

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SREI Infrastructure Finance Limited entered the segment of infrastructure financing in 1989 in a limited capacity as a construction equipment financier. The economic liberalization in 1991 widened the opportunity for SREI Infra to mobilise resource and fund larger number of customers across regions. SREI Infra persisted through the ups and downs of the business cycles emerged as one of the strong players in the infrastructure financing space with an over 25 years track record of performance and credentials.

The company has been one of India’s largest holistic infrastructure institution, constantly and consistently delivering best of services and innovative solutions in infrastructure sector. Company’s net non performing assets as a percentage of the total gross assets of Company as at March 31, 2018, March 31, 2017, March 31, 2016, 2015 and 2014 stood at 2.4%, 2.2%, 3.54%, 3.82% and 2.09%, respectively. As at December 31, 2018 secured loans as percentage of the total source of funds of Company was 5.69%.

The company has come out with an issue of secured redeemable non-convertible debentures of Rs. 100 crores with an option to retain oversubscription up to 400 Crores for issuance of additional NCDs aggregating up to Rs. 500 Crores.

The issue opens on April 9, 2019 and closes on May 9, 2019. The company is offering an interest rate or a coupon of 10.75% per annum.

The face value of the NCD is Rs. 1000 and minimum application amount is Rs. 10000 or 10 NCDs and in multiple of Rs. 1000 or 1 NCD thereafter. The issue shall get listed on BSE. DMAT account is mandatory for trading.

Brickworks has given a rating of BWR AA+/Stable to the issue. Karvy Fintech Private Limited is the registrar and Karvy Investor Services Limited is the lead manager of the issue.

Interest rates have gone down so some investors might get tempted for such company fixed deposits. But investors should understand the inherent risks of company fixed deposits. Investors have burnt their money with Jaypee, Unitech etc. So, tread with caution if you want to invest in them. Incase, you want to look at some banks offering higher interest rates than others, checkout: https://www.myfamilyinvestment.com/2012/04/latest-resident-nro-bank-fixed-deposit.html

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