Srei to take the NCD route to raise Rs 300 crore

Srei Equipment Finance Limited (SEFL), an arm of the Kolkata-headquartered Srei Infrastructure Finance Limited (SIFL), is planning to raise up to Rs 300 crore through public issue of secured and unsecured redeemable NCDs. The secured and unsecured NCDs will have a face value of Rs 1000 each, amounting up to Rs 150 crore with an option to retain over subscription for an amount of up to Rs 150 crore, aggregating thereby to Rs 300 crore (overall issue size). The basic objective of the proposed issue is to raise funds for lending/repayment of loan and for general corporate purposes, top company officials said.

Investors have the option of applying across various series of NCDs having tenors of 400 days, 3 years, 5 years and 10 years. The NCDs offer a maximum annualised coupon of up to 10.75 per cent per annum for 10 years tenor of Unsecured NCDs. Investors who are existing NCD/bonds holders of SEFL and/or SIFL, equity shareholders of SIFL, and senior citizens at the deemed date of allotment are eligible for an additional incentive of 0.25 per cent per annum in the current issue.

“The on-going government’s thrust on infrastructure development such as Bharatmala, Sagarmala, urban infrastructure, railways, irrigation etc. will continue to support the demand for construction, mining, and allied equipment. This issue will provide an impetus to leverage on the growth opportunities. SEFL has an established track record of consistent financial performance and growth. The proposed issue is a part of our ongoing endeavour to diversify our funding sources and achieving a cost effective funding mix. Backed by strong financial profile and stakeholders trust, SEFL NCDs offers lucrative options to all categories of investors to subscribe to the issue, who are keen to diversify their portfolio into debt instruments that offer fixed and good returns,” said Devendra Kumar Vyas, CEO, SEFL.

The lead managers to the issue are Edelweiss Financial Services Limited, IIFL Holdings Limited, Trust Investment Advisors Private Limited, Tipsons Consultancy Services and Srei Capital Markets.