Published on Tuesday, September 30, 2014 by Dilip Davda | Modified on Tuesday, September 13, 2016
SREI Infrastructure Finance Ltd (SIFL) is the frequent visitor to primary market with its debt offer. It is once again coming out with its 7th NCD offer since December 2011. This offer opens on 29.09.14 and will close on or before 31.10.14. It is offering NCD having face value of Rs. 1000 each with coupon rate ranging from 10.75% to 11.25%. 0.45% to 0.50% additional coupon rate is offered to individual category. These NCDs have tenure of 2,3 and 5 years with Monthly or Annual options.
The base size of the offer is Rs. 250 crore with a green shoe option to retain oversubscription up to Rs. 1500 crore. However, company hopes to raise minimum subscription of 187.50 crore (i.e. 75% of the base issue size). Application is to be made for a minimum of 10 NCDs (i.e. Rs. 10000) and in multiple of 1 NCD thereon, thereafter.
Issue is lead managed by ICICI Securities Limited, A. K. Capital Services Limited, Edelweiss Financial Services Limited, SPA Capital Advisors Limited and Srei Capital Markets Limited and co-lead managed by Bajaj Capital Limited, Integrated Enterprises (India) Limited, Karvy Investor Services Limited, RR Investors Capital Services Private Limited and SMC Capitals Limited. Axis Trustee Services Limited is the debenture trustee and Karvy Computershare Private Limited is the registrar to the issue. Post allotment, these NCDs will be listed on BSE. Although allotment is available in demat or physical mode, trading will take place only in demat mode.
The NCDs have been rated 'CARE AA- (Double A Minus)' by CARE and 'BWR AA (BWR Double A)' by BRICKWORK indicating high degree of safety regarding timely servicing of financial obligations.
Remarks: Moderate investment can be made by investors having surplus funds.
(Disclaimer: Author has no plans to invest in this debt offer)
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 is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.
Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.
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