9.75% SREI Equipment Finance NCD – January 2017 – Should you Invest?
SREI Equipment Finance has come out with public issue of non-convertible debentures (NCD) offering up to 9.75% interest rate. The issue opens on January 3 and closes on January 20, 2017.
SREI Equipment Finance is joint venture of SERI and BNP Paribas and deals with financing of Infrastructure equipment in organized sector.
SREI Equipment Finance NCD – Significant Points:
Offer Period: January 3 – 20, 2017
Annual Interest Rates for Retail Investors: 8.81% to 9.75% 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” & “AA/Stable” by SMERA Ratings Limited
NCD Size: Rs 250 crore with option to retain over-subscription upto Rs 500 crore
Allotment: First Come First Serve
Listing: Bonds would be listed on BSE & NSE and will entail capital gains tax on exit through secondary market
In case you don’t want to do it online, you can download the application form from company site or Financial Institutions and submit to collection centers.
Recommendation:
My recommendation is to invest some part of your Fixed Income investment in this NCD Issue
You should always have diversified portfolio be it fixed deposit, NCD or equity investment
Its good idea to remain invested till maturity because liquidity on exchanges is low and hence you would get lower than market value
If you plan to invest in this issue, do it early as most good NCD issues are over-subscribed before the end date.
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Amit
Hi Readers! I am Amit, the mind behind Apnaplan.com
I am MBA from NITIE, Mumbai and BIT from Delhi University.
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Sir Size has to be rectified to 250 crore with over subscription clause. It is not Rs.2500 core and Rs.5000 crore but Rs.250 crore and Rs.500 crore. I believe typographical error. Kindly rectify.
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Sir Size has to be rectified to 250 crore with over subscription clause. It is not Rs.2500 core and Rs.5000 crore but Rs.250 crore and Rs.500 crore. I believe typographical error. Kindly rectify.
Thanks for pointing this out. Have corrected it