Non-Convertible Debentures (NCD) of SREI
Infrastructure offer a yield of 12 percent per annum for both three years and
five years maturity periods.
SREI Infrastructure Finance secured redeemable non-convertible debentures (NCD) issue opened for subscription on May 09, 2014 and closes on June 09, 2014. The company has allocated 60% NCDs to individual category (retail and HNIs) and 20% each to institutional and non-institutional investors.
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. The company plans to collect Rs. 75 crore with an option to retain an additional 75 crore if the issue oversubscribes.
Credit Ratings: CARE and BWR have assigned a rating of AA-(Double A Minus) and AA (Double A) respectively. Such instruments carry low credit risk.
Tentative brokerage structure: The brokerage ranges between 0.30% and 1.75% per application offered upfront. Also, a few lead managers are offering an early bird incentive in individual category which ranges between Rs. 75 and Rs. 600.
Effective yield and Maturity: SREI Infrastructure Finance NCD will provide an effective yield of 12% to individual category for both three years and five years maturity period.
|
Effective Yield/ Tenure |
3 years (Annual) |
5 years (Annual) |
|
For non-individual investors |
11.25% |
11.50% |
|
For individual investors |
12% |
12% |
|
Post tax return for an individual falls under 30.90% tax bracket |
8.29% |
8.29% |
|
Post tax return for an individual falls under 20.60% tax bracket |
9.56% |
9.56% |
|
Post tax return for an individual falls under 10.30% tax bracket |
10.76% |
10.76% |
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.
Trustee: Axis Trustee Service.
Registrars: Karvy Computershare.
Listing: The issue will be listed on both NSE and BSE. Investors can also apply in physical mode. However, for NRIs, the issue is only available in dematerialized form.
Lead Managers: ICICI Securities, AK Capital Services, SPA Capital and SREI Capital.
Co-lead Managers: Karvy Investment Banking, Integrated Enterprises, RR Investors Capital Services, SMC Capitals and Bajaj Capital.