SREI Infra NCD Issue review - May 2014 (Apply)

The company is a non-deposit accepting systematically important Non- Banking Financial Company registered with RBI and is in the business of financing projects and asset base financing activities. The company is offering Secured Redeemable Non-Convertible Debenture of Rs. 1000 each bearing a coupon rate ranging from 10.70% to 12% and having tenure of 3 and 5 years with Monthly, Annually and Cumulative options. Minimum application is to be made for 10 NCDs and in multiples of 1 thereafter. Issue opens for subscription on 09.05.14 and will close on or before 09.06.14. The issue size is for Rs. 75 crore with an option to retail oversubscription to the tune of Rs. 75 crore making the overall size of the offer for Rs. 150 crore. Post allotment, the NCDs will be listed on BSE and NSE. This issue is rated CARE/AA- (Double A Minus) by CARE and BWR/AA (Double A) by BRICKWORK, indicating high degree of safety regarding timely servicing of financial obligations.

According to the declaration by the company in offer documents, the funds raised through this Issue, after meeting the expenditures of and related to the Issue, will be used for our various financing activities, to repay existing loans and business operations including capital expenditure and working capital requirements, subject to applicable statutory and/or regulatory requirements. The main objects clause of the Memorandum of Association permits the Company to undertake its existing activities as well as the activities for which the funds are being raised through this Issue. Further, in accordance with the Debt Regulations, Company will not utilize the proceeds of the Issue for providing loans to or acquisition of shares of any person or company who is a part of the same group and who is under the same management or any subsidiary of the Company. The Issue proceeds shall not be utilized towards full or part consideration for the purchase or any other acquisition, inter alia by way of a lease, of any property. Further, the Company undertakes that Issue proceeds from NCDs allotted to banks shall not be used for any purpose which may be in contravention of the RBI guidelines on bank financing to NBFCs including those relating to classification as capital market exposure or any other sectors that are prohibited under the RBI regulations.

Issue is lead managed by ICICI Securities, AK Capital Services, SPA Capital Advisors and SREI Capital Market and is co-managed by Karvy Investor Services, Integrated Enterprises, RR Investors Capital Services, SMC Capitals and Bajaj Capital. Karvy Computershare Pvt Ltd is the registrar to the offer. Axis Trustee Services Ltd is the Debenture Trustee to the issue.

Conclusion / Investment Strategy

Moderate Investment recommended.

Reviewer recommends Subscribing to the issue.

Review By Dilip Davda on December 11, 2019

Review Author

DISCLAIMER: 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. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).

About Dilip Davda

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com

The SREI Infra Finance NCD May 2014 Analysis helps you to understand about the company, offer detail, valuation, capital structure and financial performance. Our SEBI registered NCD Analysts tells you if SREI Infra Finance NCD May 2014 worth investing. The SREI Infra Finance NCD May 2014 Note sets the NCD expectations in systematic way which tells you if SREI Infra Finance NCD May 2014 good to buy (good or bad / yes or no). The NCD Forecast tells you weather to invest in SREI Infra Finance NCD May 2014 by providing NCD recommendations i.e. subscribe, avoid and neutral.

SREI Infra NCD Issue review - May 2014 (Apply)

Conclusion / Investment Strategy

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