10.75% Srei Infrastructure Finance Ltd NCD Issue April 2019 Details & Reviews

Srei Infrastructure Finance limited NCD Review, Credit Rating, Reasons to Invest, Price, Date, Allotment, Listing, Status & How to Apply?

Our today’s post is centered on SREI infrastructure finance limited NCD Issue details. There is a flood of Upcoming NCD in 2019. There are more than 5 companies aligned for nonconvertible debentures in April 2019 to pull thousands of crores.

Srei infra enter the segment of infrastructure in the year 1989 in a limited capacity as a construction equipment financiers.

During the pre-liberalization era, India’s infrastructure limited was hugely dominated by few players with negligible roles for private sector player.

The economic liberalization in 1991 open the scope for SREI infra to mobilize the resources and fund a larger number of a customer across regions

It is one of the largest and holistic infrastructure institutions, constantly and consistently delivering quality services and innovative solution in the infrastructure sector.

SREI Equipment Finance Limited is one of the top names in the financier in the Construction, Mining Alliedied Equipment (“CME”) sector in India, with an approximately 32.7% market share in Fiscal 2017 (Source: Feedback Report).

This sector primarily consists of Equipment used for earthmoving and mining, concreting, road building, material handling, material processing, and allied activities. Its product offerings include loans, for new and used equipment, and leases.

Stay tuned with us to learn in-depth about the SREI Infrastructure Finance Ltd – NCD

So without any further adieu let’s begin

About SREI Equipment Finance Limited

Let’s have a glance at the brief introduction of the company. It is very significant to gather details about the company in which you are investing your money.

  • Srei Equipment Finance Ltd. (SEFL) has come into view as one of the major equipment
    financiers in India.
  • SEFL savors a Pan-India presence with offices in 89 locations.
  • It has professional and adroit management team having significant expertise in the financial services
  • Financial products offered by SEFL consist of as follows Loans, Leases, Rental and Pay per-Use services.
  • The company proffers financial products and services to the company operating in the construction and mining equipment, IT Infra equipment, Healthcare equipment, Farm Equipment, and Pre-owned Construction Equipment.
  • IPO Calendar 2019

SREI Infrastructure Finance Limited NCD – Issue Details

SREI Infra Finance NCD

Issuer SREI Infrastructure Finance Limited (View Report)
Issue Type Secured Redeemable Non-Convertible Debentures
Issue Period Issue Opens: Tuesday, April 09, 2019
Issue Closes: Thursday, May 09, 2019
Coupon Rate 10.75% p.a *
Issue Size Base Issue of Rs.100 Crores with an option to retain oversubscription up to Rs.400 Crores aggregating up to Tranche I Issue Size of Rs.500 Crores
Face Value Rs.1,000 per NCD
Minimum Application Size Rs.10,000 (10 NCDs) and in

Multiple of Rs.1,000 (1 NCD) thereafter across all Series

Credit Rating “BWR AA+ (Outlook: Stable)” by Brickworks
Mode of Allotment & Trading Traded compulsorily in Dematerialised Form
QIB 15% of the issue size
Corporate 15% of the issue size
Retail Individual 70% of the issue size
Listing BSE
Depositories NSDL & CDSL
Registrar Karvy Fintech Private Limited (formerly known as Karvy Computershare Pvt Limited)
Book Running Lead Managers Karvy Investor Services Limited and SMC Capitals Limited

Interest Rates for SREI Infra Finance Limited NCD

Series 1 Series 2 Series 3 Series 4 Series 5 Series 6 Series 7 Series 8
Frequency of Interest Payment NA Annual Monthly Annual NA Monthly Annual NA
Tenor 400 days 400 days 3 year 3 year 3 year 5 year 5 year 5 year
Coupon Rate (Retail) For Category I & II/ for III & IV NA 9.75% 10.05% 10.50% NA 10.25% 10.75% NA
Amount on Maturity For Category I & II/ for III & IV ₹1,108 ₹1,000 ₹1,000 ₹1,000 ₹1,350 ₹1,000 ₹1,000 ₹1,667

How is the company doing in terms of financials?

ALWAYS REMEMBER

“Never invest in a business you cannot understand.”

Let us have a look at the financials of the company

  • Its revenues are changing. Its FY16 revenues are at Rs 2614 Crores vs. Rs 2,493 Crores in FY17 Vs Rs 3,309 Crores in FY18.
  • The profits of the company growing,  In the last 3 years, its profits are at Rs 115 Crores in FY16 Vs Rs 263 Crores in FY18.
  • Net Non-Performing Assets (NPA) of the company is 1.99% (FY2016) vs. 1.3% (FY 2018) specifying good improvement in this area.

Why to invest?

  • One of the key reason is that the company proffer lucrative annualized yield up to 10.75%. Whereas, currently banks fixed deposit are offering interest rates of around 7%; hence these are definitely a good option.  Several new NCDs are even offering the highest interest rates now.
  • It offers secured NCD which has low-risk factor compared to the unsecured NCD
  • There will be no TDS if you invest in a demat form.

Why not to Invest?

  • The recent IL&FS scam created a dilemma among investors whether to [ark their money in financing companies in India
  • Outstanding litigation unsettled against the company
  • As a nonbanking and finance companies, there is a higher risk of default and non-payment on the part of borrowers and other counterparties may materially and adversely affect its profitability and assets quality.
  • Any such default or nonpayment may cause write off and/ or provisions in its financial statements which may materially and adversely affect profitability and asset quality.
  • Its business is centered on the infrastructure equipment financing sector, with a particular focus on business and mining equipment and any adverse economic regulatory developments in the infrastructure including construction and mining sectors may adversely affect its results of operations.
  • If loans made to borrowers in these sectors become non-performing or there are defaults on such loans, its business, financial condition and results of operations may be materially and adversely affected.
  • The company’s top 20 borrowers have an exposure of 11.68% of its total exposure as on March 31, 2017.

Its inability to maintain a relationship with such customers or any default and non-payment in future or credit losses of its single borrower or group exposure where we have a substantial exposure could materially and adversely affect its business, future financial performance, and results of operations.

Srei Infra entered the segment of infrastructure financing in 1989 in a limited capacity as a construction equipment financier. During the pre-liberalization era, India’s infrastructure segment was largely dominated by few players with the negligible role for private sector players.

The economic liberalization in 1991 widened the opportunity for Srei Infra to mobilize resource and fund a larger number of customers across regions. Srei Infra persisted through the ups and downs of the business cycles emerged as one of the strong players in the infrastructure financing space with an over 25 years track record of performance and credentials.

With a history of over 25 (twenty-five) years in the infrastructure sector, Srei Infra has been one of India’s largest holistic infrastructure institution, constantly and consistently delivering best of services and innovative solutions in the infrastructure sector

SIFL’s net non-performing assets as a percentage of the total gross assets of Company as at March 31, 2018, March 31, 2017, March 31, 2016, 2015 and 2014 stood at 2.4%, 2.2%, 3.54%, 3.82%, and 2.09%, respectively. As of December 31, 2018, secured loans as a percentage of the total source of funds of Company was 5.69%.

How to Apply for SREI Infrastructure Finance Limited NCD?

If you have a demat account, you can log in into your account, then go to the FD/NCD section and apply with a single click. Meanwhile, You can also visit the business associates who are issuing these NCDs.

Objects of the Issue

The net proceeds raised through the issue will be used for the following activities

  • For the purpose of lending/repayment of loan-minimum 75 % of the net proceeds
  • For the general corporate purpose.

Company Contact Information

SREI Infrastructure Finance Limited
6A Kiran Shankar Roy Road,
Kolkata – 700 001,
West Bengal, India
Phone: +91 33 6160 7734
Email: connect@sreibonds.com
Website: https://www.srei.com/

SREI Infrastructure NCD April 2019 Registrar

Karvy Computershare Private Limited
Karvy Registry House, 8-2-596, St. No. 1,
Banjara Hills, Hyderabad – 500 034
Andhra Pradesh, India

Phone: +91-40-23312454
Email: sifl.ncd11@karvy.com
Website: https://karisma.karvy.com/

Should you invest in SREI Infrastructure Finance Limited?

SREI Infrastructure Finance Limited offers both secured and unsecured NCD. It is to be noted that one should avoid unsecured non-convertible debentures and opt for secured NCD.

However, in the case of unsecured NCDs, the investor should keep in mind that there is no assurance that investor would get their capital and interest.

In an event of nonperformance, it is only these secured debentures that there are higher chances that they would get their money back.

If we consider the recent IL&FS scam, it is a very high risk to invest in such NCD now. Therefore it is important for the investors to be a little cautious about the decision.

If you are someone who has high-risk appetite then you can consider investing in such NCDs

So dear investors if you are planning to park your money in SREI Infrastructure Finance Limited NCD then do the thorough research and consider the strengths and financials of the company.

It is an apt statement ” An investment in knowledge pays the best interest”

Final Words

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Thanks for reading and have a nice day ahead.

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