Hyderabad : Srei Equipment Finance Limited (“SEFL”), a wholly-owned subsidiary of Srei Infrastructure Finance Limited (“SIFL”), is proposing a public issue of secured non-convertible debentures (“Secured NCDs”) and Unsecured Subordinated NCDs of face value Rs 1,000 each (“Unsecured NCDs”), amounting up to Rs 150 crore (“Base Issue Size”) with an option to retain oversubscription for an amount up to Rs 150 crore, aggregating to Rs 300 crore (“Overall Issue Size”).
The issue will open on December 19, 2018 and close on January 18 2019, with an option of early closure. 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 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% p.a.in this current Issue.
SEFL is an industry leader in the construction, mining and allied equipment (“CME”) finance space, with an approximate market share of 33% in FY 2018 (Source: Feedback Report). The company enjoys a pan India presence with 90 branches and four offices, including its head office in Kolkata.
The NCDs have a credit rating of “BWR AA+” (BWR Double A Plus) (Outlook: Stable) by BRICKWORK and ” ACUITE AA+/Stable’ (ACUITE Double A plus/Stable)” by ACUITE Ratings Limited (“ACUITE”). Instruments with such ratings are considered to have a high degree of safety regarding timely servicing of financial obligations and carry very low risk. The issue is proposed to be listed on the BSE Limited (“BSE” or “Designated Stock Exchange”)
Commenting on the proposed NCD issue, Mr. Devendra Kumar Vyas, CEO, SEFL, said, “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.”
The object of the proposed issue is to raise funds for lending/repayment of loan and for general corporate purpose. The lead managers to the issue are Edelweiss Financial Services Limited, IIFL Holdings Limited, Trust Investment Advisors Private Limited, Tipsons Consultancy Services Private Limited and Srei Capital Markets Limited.