10% SREI Infrastructure Finance NCD – September 7 to 28, 2016 - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Wednesday, September 07, 2016

10% SREI Infrastructure Finance NCD – September 7 to 28, 2016

 10% SREI Infrastructure Finance NCD – September 2016

SREI Infrastructure Finance has come out with public issue of non-convertible debentures (NCD) offering up to 10% interest rate. The issue opens on September 7 and closes on September 28, 2016.

SREI Infra Finance is primarily into financing of infrastructure projects along with advisory.

SREI Infra Finance NCD – Key Points:

·  Offer Period - September 7 – 28, 2016

·  Annual Interest Rates for Retail Investors- 9% to 10% depending on tenure

·  Price of each bond- Rs. 1,000

·  Minimum Investment- 10 Bonds (Rs. 10,000)

·  Max Investment Limit for Retail Investor-  Rs. 10 Lakhs

·  Credit Rating- “BWR AA+” (Outlook Stable) by “BRICKWORK”

·  NCD Size: Rs. 250 crore with option to retain oversubscription of Rs. 1000 crore

·  Allotment- First Come First Serve

·  Listing: Bond -  would be listed on BSE and NEX and will entail capital gains tax on exit through secondary market



How to Apply?
If you have Demat account apply through that or / ASBA facility provided by banks. 

It’s the easiest way to apply and also avoids a lot of hassle in terms of KYC and paper work


Who can Apply?

This issue is open to all Indian residents, HUFs and Institutions.

·  Category I – Institutional Investors – 20% of the issue is reserved

·  Category II – Non-Institutional Investors, Corporates –  20% of the issue is reserved

·  Category III – Retail Individual Investors including HUFs – 60% of the issue is reserved

However NRIs cannot apply for this NCD.

Why you should invest?

1.      The NCD is secured, which means the above debt is backed by assets of the company

2.    The interest rates are about to 2%-3% higher than your regular Bank FDs

3.    No TDS if invested in Demat Form

Why you should not invest?

1.      Infrastructure Financing is risky business as the success depends on timely and successful completion of the project. In India, there are a lot of infrastructure projects struck at various stages for various reasons.
2.    The NPA is 3.54% which is bad
3.    The profits of the company declined in last few years

10% SREI Infrastructure Finance NCD – September 7 to 28, 2016 Reviewed by S. Chitra on September 07, 2016 Rating: 5  10% SREI Infrastructure Finance NCD – September 2016 SREI Infrastructure Finance  has come out with public issue of non-convertible debe...

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