Posted on Tuesday, June 30, 2015
Modified on Tuesday, September 13, 2016
Well, while we witnessed bunch of main board and many more SME IPOs since beginning of this financial year amidst hope for rate cuts and perhaps the corporate issuers too were waiting for the same. However, the ice is being broke by SREI Infrastructure Finance for its Tranche 2 debt offer. Details of the same are as under:
With a large customer base and over Rs. 25240 crore of Consolidated Assets Under Management as at March 31, 2015, Srei Group has a pan-India presence with a network of 99 offices. SREI Infra is a registered NBFC engaged in infrastructure financing activities. The group has standing of over 25 years.
To part finance its lending/repayment of loans (upto 75% of the issue proceeds) and for meeting general corpus funds (up to 25% of the issue proceeds) the company is coming out with a 20,00,000 SECURED REDEEMABLE NON-CONVERTIBLE DEBENTURES OF FACE VALUE OF Rs. 1,000/- EACH. Base issue size is Rs. 200 crore with a green shoe option to retain oversubscription up to Rs. 1000 crore within the residual shelf limit of Rs. 1173.86 crore. Issue is rated as CARE AA- (Double A minus) by CARE and BWR AA (Double A) by Brickwork indicating to have high degree of safety regarding timely servicing of financial obligations. Issue opens for subscription on 01.07.15 and will close on or before 20.07.15. Minimum application is to be made for 10 NCDs and in multiple of 1 NCD thereon, thereafter. Issue has interest option on Monthly, Annual and Cumulative and the coupon rate ranges from 10% to 10.75% depending on the choice of investors. It offers tenure for 39 and 60 months. Application can be made for allotment in demat or physical mode (only for retail investors), however, trading will take place only in demat mode. 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 managers are 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 Pvt Ltd is the registrar to the issue. Post allotment, NCDs will be listed on BSE.
Company's equity capital as on 31.03.15 is Rs. 503.24 crore with a support of free reserves of Rs. 2234.78 crore. For last three fiscals company has posted total turnover/net profit of Rs. 1666.47 crore/Rs. 94.96 crore (FY 2013), Rs, 1805.85 crore/Rs. 59.32 crore (FY 2014) and Rs. 1900.03 crore/Rs. 90.93 crore. It is suffering in bottom lines in line with general trends of the market and stalled spending on infrastructures. Its net NPA for the year ended 31.03.15 increased to 3.84% against 2.75% for the previous fiscal. Its debt/equity ratio as on 31.03.15 on pre-issue is at 2.33 that will stand enhanced to 2.70 post issue.
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. With entry barriers, SEBI wants only well informed investors to participate is such offers. With crazy recent listings, SME IPOs have started drawing attention of investors across the board. However, as SME issues have entry barriers and continued low preference from broking community, any reader taking decisions based on any information published here does so entirely at own risk. Above information is based on information available as on date coupled with market perceptions. 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.
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