IPO Alert! Srei Infrastructure Finance proposes public issue of NCD offering coupons up to 10.75 pct annually
Srei is proposing a public issue of secured redeemable NCDs. The issue has a face value of Rs 1,000 each amounting up to Rs 100 crore with an option to retain oversubscription up to Rs 400 crore.
India's largest holistic infrastructure institutions Srei Infrastructure Finance Limited (Srei) is proposing a public issue of secured redeemable non-convertible debentures (NCDs). The issue has a face value of Rs 1,000 each amounting up to Rs 100 crore (Base Issue Size) with an option to retain oversubscription up to Rs 400 crore, totalling up to Rs 500 crore (Tranche 1 Issue Size) within the shelf limit of Rs 1500 crore (“Tranche 1 Issue”). The Tranche 1 Issue opens on April 9, 2019 and closes on May 9, 2019.
Commenting on the development in this regard, Rakesh Bhutoria, CEO at Srei told Zee Business online in a written statement, "In light of the recent rate cut of 25 basis points by RBI, well priced NCDs have become a preferred choice of retail investors. With a strong legacy of several decades, Srei has consistently worked to live up to the trust and interest of our stakeholders and investors. We are also committed to deepening of the corporate bond market and we expect good demand for our latest offering."
See Zee Business Live streaming below:
The NCDs have a credit rating of "BWR AA+" (BWR Double A Plus) (Outlook: Stable) by BRICKWORK. The highest coupon is 10.75% p.a. for investors of all categories for the tenor of five years. For all categories of investors for the tenor of three years, the highest coupon is 10.50% p.a. and for the tenor of 400 days, the highest coupon is 9.75% p.a. An additional coupon of 0.25% will be offered to all category investors who are existing shareholders of Srei, NCDs/bondholders of both Srei and Srei Equipment Finance Limited ("SEFL") and senior citizens. Additional coupon is not applicable for series of 400 days tenor irrespective of any category of investors.
The NCDs are proposed to be listed on the BSE (BSE being the designated Stock Exchange). The allotment of NCDs will be mandatorily in dematerialized form to all categories of investors. Along with retail, institution and non-institution, charitable/religious trusts can also apply for the upcoming Tranche 1 Issue.
The Lead Managers to the Tranche 1 Issue are Karvy Investor Services Limited, SMC Capitals Limited and Srei Capital Markets Limited.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.