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.
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Review By Dilip Davda on December 13, 2019
Dilip Davda is a veteran financial journalist associated with the Indian stock market since 1978. He has been contributing to print and electronic media on capital markets, insurance, and finance since 1985.
He is widely recognized for reviewing public issues and non-convertible debentures (NCDs) in the primary market. Drawing on over three decades of market experience and close interaction with merchant bankers, his reviews focus on detailed fundamental and financial analysis of companies, with a special emphasis on SME public issues.
Dilip Davda
SEBI Registered Research Analyst – Mumbai
Registration No.: INH000003127 (Perpetual)
Email: dilip_davda@rediffmail.com
Disclaimer: The information provided herein is solely for educational and informational purposes and does not constitute an offer, solicitation, or recommendation to buy or sell any securities. Readers are advised to consult a qualified financial advisor before making any investment decisions. Investments in the securities market are subject to market risks. The author does not intend to invest in the securities discussed.
