SREI Equipment Finance company’s secured redeemable non-convertible debentures (NCD) is offering an effective annual yield of 10.26% per annum over five years.
SREI Equipment Finance Limited’s non-convertible debentures (NCD) is currently open for subscription and closes on April 30, 2015. The company is a joint venture between SREI Infrastructure and BNP Paribas group.
The company has allocated 60% of NCDs for retail investors and 20% each for institutional and non-institutional investors.
Who can apply: Resident Indian 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 can invest in this NCD.
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.250 crore with an option to retain an additional Rs.250 crore if the issue oversubscribes.
Credit Ratings: CARE and Brickwork Rating India have assigned ratings of AA (Double A) to this issue indicating good financial stability and ability to fulfil its obligation.
Tentative Brokerage structure: The brokerage ranges between 1.25 % and 1.75% per application offered upfront. However, the brokerage could vary across distribution channels and based on achievement of volumes.
Effective yield and maturity:
|
Effective annual Yield/Tenure |
24 months |
39 months |
60 months |
|
|
For all investors |
10.22% |
10.24% |
10.26% |
|
|
Post tax returns for individuals falling under 10.30% tax bracket |
9.16% |
9.18% |
9.20% |
|
|
Post tax returns for individuals falling under 20.60% tax bracket |
8.11% |
8.13% |
8.14% |
|
|
Post tax returns for individuals falling under 30.90% tax bracket |
7.06% |
7.07% |
7.08% |
|
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 these NCDs.
Trustee - Axis Trustee Services Limited
Registrar - Karvy Computershare Private Limited
Listing - The NCDs will be listed on BSE and NSE
Lead managers - Edelweiss Financial Services Limited and Srei Capital Markets Limited
Lead Brokers: A. K. Stockmart Private Limited, AUM Capital Market Private Limited, Axis Capital Limited, Edelweiss Broking Limited, HDFC Securities Limited, IDBI Capital Market Services Limited, India Infoline Limited, Integrated Enterprises (India) Limited, JM Financial Services Private Limited, Just Trade Securities Limited (Formerly known as Bajaj Capital Investor Services Ltd), Karvy Stock Broking Limited, Kotak Securities Limited, RR Equity Brokers Private Limited, SMC Global Securities Ltd, SPA Securities Limited, Tipsons Stock Brokers Private Limited.
