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SREI Infra NCD Issue review - Jan 2017

Posted on Wednesday, January 25, 2017

SREI Infra NCD Issue review - Jan 2017

SREI Infrastructure Finance Ltd a frequent visitor to debt market is once again coming out with a debt offer of 20,00,000 Secured Redeemable Non-Convertible Debentures of Face Value of Rs. 1,000/- each aggregating up to Rs. 200 crore ( Base Issue Size ), with an option to retain over subscription up to additional 5,066,360 NCDs of face value of Rs. 1,000/- each, amounting to Rs. 506.64 crore, aggregating up to the residual shelf limit i.e. Rs. 706.64 crore ( Overall Issue Size ) ( Tranche 2 Issue).

To part finance its lending and re-payment of loans and raise general corpus fund, the company is raising debt capital. This offer opens for subscription on Monday, January 30, 2017 and will close on or before 23.02.17. Minimum application is to be made for 10 NCDs (i.e. Rs. 10000) and in multiple of 1 NCD (i.e. Rs. 1000) thereon, thereafter. This offer has coupon rates ranging from 8.50 per cent to 9.50 per cent and tenure of 400 days, 3 yrs and 5 yrs. The company offers 0.25 per cent additional coupon rate for senior Citizens, existing shareholders and NCD holders. Interest payment will be on Monthly, Annual or Cumulative basis as per the choice of investors. Post allotment, NCDs will be listed on BSE and NSE. Allotment will be made on first come-first serve basis. Issue is jointly lead managed by ICICI Securities Ltd, A K Capital Services Ltd. Edelweiss Financial Services Ltd, IIFL Holdings Ltd, Karvy Investors Services Ltd., SREI Capital Markets Ltd., Trust Investment Advisors Pvt Ltd. and Yes Securities (India) Ltd. Axis Trustee Services Ltd is the debenture trustee and Karvy Computershare Pvt Ltd is the registrar to the issue. Post Issue Company’s debt equity ratio will stand enhanced from 5.28 times to 5.64 times. Allotment will be made in demat mode for all other categories except retail individuals. However, trading will take place in demat mode only.

This offer is rated “BWR AA+” by Brickworks Rating. This rating is considered to have high degree of safety regarding timely servicing of financial obligations.

Conclusion: Those looking for steady interest income may consider investment in this offer for medium to long term.

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About Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).

About Dilip Davda

Dilip Davda (SEBI registered Research Analyst-Mumbai), a freelance journalist for more than 25 years, is a stock market analyst and news article writer. Since 1985, he has contributed to print media, electronic media and often appears on TV channels as visiting stock analyst. His articles are regularly publishes in Smart Investment (English and Gujarati weekly published from Ahmedabad), Free Press Journal and many other news papers & magazines. He is also a visiting stock analyst on DD News TV Channel.


User Comment

1. ipotrackerzz  Feb 5, 2017 8:14:08 AM IST Reply
Tried applying using Sbi net banking. Error message displayed"cross site scripting". Pls help
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