SREI Equipment Finance plans to raise funds up to Rs.1,000 crore through a public issue of non-convertible debentures (NCDs). The company is offering an attractive yield ranging from 8.50% to 9.60% pa. The NCDs also offer a tenure varying from 400 days to 10 years, with an option of monthly or annual interest payouts.
The issue will open for subscription on April 25 and close on May 16, 2018.
IFAs can get brokerage of up to 2.20% depending on the category of investors and holding tenure. You can earn commission of 0.40%, 1.60%, 1.85% and 2.20% for 400 days, three, five and 10 years, respectively if the application size is up to Rs.10 lakh. Similarly, for the application size exceeding Rs.10 lakh, you can get commission of 0.40%, 1.55%, 1.75% and 2.20% for 400 days, three, five and 10 years, respectively.
However, the commission structure varies marginally if you bring application post May 2, 2018. IFAs will get commission of 0.40%, 1.40%, 1.65%, and 2.00% for 400 days, three, five and 10 years, respectively if the investment is less than Rs.10 lakh. Similarly, IFAs will get brokerage of 0.40%, 1.35% and 1.55% and 1.75% for investment that exceeds Rs.10 lakh.
In addition, you will get a special incentive of Rs.100 per application if you go online.
Here are the other key attributes of the NCDs:
Application size: The company plans to raise Rs.500 crore with an option to retain an additional Rs.500 crore if the issue oversubscribes.
Credit Ratings: SMERA and BRICKWORK have assigned a rating of AA+ (Double A).
Listing: BSE will list this NCD.
