Money & Banking

Srei opens bond issue to raise up to Rs 500 cr

PTI New Delhi | Updated on April 09, 2019 Published on April 09, 2019

Srei Infrastructure Finance on Tuesday opened its bond issue to raise up to Rs 500 crore for on-lending and meeting general corporate needs. The first tranche of the company’s non-convertible debentures (NCDs) is slated to close on May 9, the company said in a release.

The issue is of a face value Rs 1,000 each amounting up to Rs 100 crore (base issue) with an option to retain oversubscription of up to Rs 400 crore, totalling up to Rs 500 crore (tranche 1 issue size) within the shelf limit of Rs 1,500 crore (tranche 1 issue), Srei said. The highest coupon is 10.75 per cent per annum for investors of all categories for tenure of five years.

Srei said it would offer an additional coupon of 0.25 per cent to all category of existing bondholders of both Srei and Srei Equipment Finance and senior citizens. The company intends to utilise up to 75 per cent of the net proceeds from the issue for lending or repayment of loan, while up to 25 per cent would be for meeting general corporate purpose.

“In light of the recent rate cut of 25 basis points by the RBI (Reserve Bank of India), well-priced NCDs have become a preferred choice of retail investors. We are also committed towards deepening of the corporate bond market and we expect a good demand for our latest offering,” said Rakesh Bhutoria, Chief Executive Officer, Srei.

Published on April 09, 2019

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.