The NCD gives an opportunity to double the principal amount in 6 years and 6 months. The issue is currently open and will close on April, 25th 2013.
Who can apply: Resident individuals, HUFs, partnership firms, companies and body corporates, banks, public financial institutions, national investment funds, mutual funds, venture capital, insurance companies, commercial banks, co-operative banks, public/private charitable trusts, industrial research organizations and other eligible categories.
Application size: The minimum application size is Rs 10,000 for 10 NCDs as the face value per debenture is Rs 1000. NCD will collect Rs 75 crore with an option to retain an additional 75 crore if the issue oversubscribes. There will be no ceiling limit for the investors.
Use of proceeds: Funds raised through the issue of NCDs will be utilized for various financing activities, repaying of existing loans and expansion of business operations.
Effective yield and Maturity: SREI Infrastructure Finance NCD will provide effective yield of 10.75 percent and 11 percent for three years and five years maturity periods respectively. It will also give an opportunity to the double the principal investment in 6 years and 6 months. TDS will apply.
Who can sell the product: Registered stock brokers with any stock exchange along with their respective sub-brokers, banks and intermediaries selected by the issuing company.
How can an IFA get registered to sell the product: An IFA has to sign the sub-broker agreement with a stock broker to be eligible to sell the bonds.
Tentative brokerage structure: Maximum brokerage of 1.5% per application is offered upfront which could vary across distribution channels and based on achievement of volumes
Trustee: Axis Trustee Service.
Registrars: Karvy Computershare.
Listing: The issue will be listed on BSE.
Credit Ratings: CARE and BWR have assigned a rating of AA-(Double A Minus) and AA (Double A) respectively. Such instruments carry very low credit risk.
Withdrawal of applications: In the event of withdrawal or rejection of application form or for unsuccessful application forms, the application amount will be credited to the relevant account within 12 working days.
Lead Managers: ICICI Securities, AK Capital Services, Trust Capital and SREI Capital.
Lead Broker: AxisCapital, Centrum Broking, Edelweiss Broking, HDFC Securities, ICICI Securities, IDBI Capital and other.
SREI has allocated 40 percent of NCD to the individual category with 30 percent each for HNIs and QFIs.
