Srei arm's NCD issue subscribed 1.16 times

Srei Equipment Finance Ltd (SEFL) recent bond issue has received a phenomenal response with the base issue of Rs 500 crore getting oversubscribed by 1.16 times. SEFL, a wholly-owned subsidiary of Srei Infrastructure Finance Ltd, is among India's largest infrastructure equipment finance companies, financing every third construction and infrastructure equipment in the country.

The company had issued unsecured, subordinated, redeemable non-convertible debentures (NCDs) of face value Rs 1,000 each amounting up to Rs 500 crore, with an option to retain oversubscription up to additional Rs 500 crore. The issue closed on July 31, 2017.

The NCDs were rated 'BWR AA+', having an outlook 'Stable', by BRICKWORK and 'SMERA AA+' (also having an outlook 'Stable') by SMERA.

As many as 20,860 investors participated in the issue with total subscription touching Rs 582.04 crore. Retail subscription had 67% share while the rest 33% was institutions and non-institutions. The number of retail participants was 19,200.

Sanjeev Kumar, senior vice president and head – resource mobilisation (retail liabilities), Srei, said, "The proceeds of the issue will be used for various lending activities, to repay a part of SEFL's existing loans and for general corporate purposes."

The lead managers to the issue were Edelweiss Financial Services, Trust Investment Advisors, AK Capital Services , SPA Capital Advisors and Srei Capital Markets.