Srei Infrastucture Finance Limited Launches Secured NCDs - Infrastucture Bonds
MUMBAI, September 10, 2013
MUMBAI, September 10, 2013 /PRNewswire/ --
Srei Infrastructure Finance Limited has launched the public issue of secured
NCDs from 26th August, 2013 to 17th September 2013. The NCDs are fully secured
and the issue size is of Rs 100 crores with a green shoe option of Rs 100
Crores. The issue has been rated CARE AA- by CARE and and BWR AAby
Brickworks. Investors have an opportunity todouble their money in 6 years 3
months and the maximum interest offered is upto 11.75% per annum for
Srei Infrastructure Finance has 24 years of experience in the infrastructure
financing space and is one of the leading NBFCs in India. It has the status of
a PFI (Public Financial Institution) and is also classified as
IFC(Infrastructure Finance Company) by the Reserve Bank of India.
Srei has strong financials with consolidated asset under management of Rs
33,330 and profit after tax at Rs 263 Crore as on March 31, 2013 on a
What are NCD's?
Non Convertible Debentures are certificates issued by companies to raise funds
from public. It's structured like a debt instrument with fixed tenure and
interest payment at regular intervals. Invested amount is returned in the form
of regular payments throughout the tenure or by onetime payment at the end.
NCD's cannot be converted into common shares (Non Convertible) and usually
carry higher interest rates as compared to other debt instruments.
Non Convertible Debentures investment is considered safe as compared to
equity/company fixed deposit investment since claim of NCD investor is
considered superior as compared to equity/fixed deposit investor.
Advantages of NCD Investment
Investment in NCD can be a smart decision as it scores above other debt
investment options. A brief comparison between NCD and Bank Fixed Deposit
investment is presented below:
Investment comparison (NCD Vs Bank FD)
Investment in NCD Investment in Bank FDs
Interest rates offered are attractive interest
compared to other fixed income rate as
instruments such as Bank Fixed compared
Returns Deposits to NCD's
NCDs are listed on NSE and BSE and exchanges,
can be traded in the secondary market hence
similar to trading in shares and cannot be
Flexibility bonds traded
Fairly liquid, as most NCD's are for
traded. There is no penalty for premature
Liquidity liquidation withdrawal
With Interest rates going down, bond interest
Interest rate sensitivity prices goes up and vice versa rates
Investment in this NCD issue is recommended for following reasons -
1.Attractive assured interest rates offered for a period of 3 - 6 years
2.Opportunity for 'doubling your money' in 6 years 3 months
3.Ideal investment opportunity for those looking for regular income -
monthly and annual interest payouts
4.There is no tax deduction at source (TDS) if you invest through the DEMAT
5.Easy liquidity through listing in NSE and BSE
6.Suitable for small investors too as minimum investment amount is Rs.10,000
About Srei Infrastructure Finance Limited:
Srei is a Holistic Infrastructure Institution, constantly and consistently
ideating to deliver innovative solutions in infrastructure space, thus playing
a significant role in nation-building for over two decades, both in urban and
rural India. Srei's businesses include infrastructure project finance,
advisory and development, infrastructure equipment finance, alternative
investment funds, capital market and insurance broking. Srei has a pan-India
presence with a network of 99 offices and has also replicated its business
model overseas with offices in the Russian Federation.
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