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Company Overview

Company Overview

SREI Equipment Finance Limited; one of the leading non-banking financing companies in the organized equipment financing sector in India with a principal focus on financing infrastructure equipment. The Company is registered with the RBI as a non-deposit taking systemically important, non-banking financial company (“NBFC”). It provides financial products and services to companies operating in the construction, mining, technology and solutions, healthcare, ports and railways, oil and gas, agriculture and transportation sectors. Its financial products and services comprise loans, leases, rentals and fee-based services.

The Company has widespread network of offices across India to cater to the needs of a diverse customer base across various business segments and have been a key driver of its growth over the years. As of September 30, 2016, it has presence in approximately 21 states, including 89 branches across India.
Issue Highlights
Issue opens Tuesday, January 03, 2017
Issue closes Friday, January 20, 2017
Allotment First Come First Serve Basis
Face Value Rs. 1000 per NCD
Issue Price Rs.1000 per NCD
Nature of Instrument Secured Non-convertible Debentures
Minimum Application 10 NCDs (rs.10000) & in multiple of 1 NCD
Listing NSE / BSE
Rating 'BWR AA+ (BWR Double A Plus) (Outlook: Stable)' by BRICKWORK 'SMERA AA/Stable' by SMERA
Interest on Application Amount 8.00% per annum
Interest on Refund Amount 6.00% per annum
Lead Manager Edelweiss Financial Services Ltd. & Others
Registrar Karvy Computershare Private Limited
Issue Size Rs. 2,500 million with an option to retain oversubscription upto Rs.,500 million aggregating to a total of upto Rs.5,000 million.
Cheque in Favor of SEFL - NCD II Escrow Account

*NRI'S are Not Allowed to Invest

Issue Break up

Category Allocation Issue Size (Amt in Crs)
Base Issue Self Limit
QIB 30% 75 150
Corporate 20% 50 100
Individual 50% 125 250
Total 100% 250 500

Effective Yield (p.a.)

Series I** II# III*** IV** V# VI VII
Frequency of Interest Payment NA Monthly Annual NA Monthly Annual NA
Tenor from Deemed Date of Allotment 400 days 3 years 5 years
Effective Yield (per annum) Category I and Category II 8.63% 9.27% 9.29% 9.27% 9.50% 9.52% 9.50%
Effective Yield (per annum) Category III 8.81% 9.51% 9.54% 9.55% 9.75% 9.77% 9.75%
NCD Facts
Issuer Srei Equipment Finance Limited
Type of Instrument Secured, redeemable, non-convertible debentures
Base Issue Size Rs.2,500 million
Option to retain Oversubscription Amount Rs.2,500 million
Total Issue Size Rs.5,000 million
Mode of Issue Public Issue
Minimum Application Size and in multiples Rs.10,000 (10 NCDs) collectively across all Series and in multiple of Rs.1,000 (1 NCD) thereafter across all Series
Credit Rating / Rating of the Instrument The NCDs have been rated 'BWR AA+ (BWR Double A Plus) (Outlook: Stable)' by BRICKWORK pursuant to letter dated November 9, 2016 and reaffirmed vide letter dated November 10, 2016 and further reaffirmed by letter dated December 5, 2016 and 'SMERA AA/Stable' by SMERA pursuant to letter dated November 9, 2016 and reaffirmed by letter dated December 6, 2016. Instruments with a rating of 'BWR AA+ (BWR Double A Plus) (Outlook: Stable)' by BRICKWORK and 'SMERA AA/Stable' by SMERA are considered to have high degree of safety regarding timely servicing of financial obligations. The rating provided by SMERA and BRICKWORK may be suspended, withdrawn or revised at any time by the assigning rating agency on the basis of new information etc., and should be evaluated independently of any other rating. The rating is not a recommendation to buy, sell or hold securities and investors should take their own investment decisions.
Put/Call Option N.A.
Issuance mode* Physical and demat*
Deemed Date of Allotment The Deemed Date of Allotment for the NCDs shall be the date on which the Board of Directors or duly authorized committee thereof approves the allotment of NCDs or such date as may be determined by the Board of the Company and/or a duly authorized committee thereof and notified to the Stock Exchanges. All benefits under the NCDs including payment of interest will accrue to the NCD Holders from the Deemed Date of Allotment. The actual allotment of NCDs may take place on a date other than the Deemed Date of Allotment.
Interest on Application Amount The Company shall pay to the successful Applicants, interest at 8% on the Application Amount allotted, from the date of realization of the Application Amount through cheque(s)/demand draft(s)/any other mode up to 1 (one) day prior to the Deemed Date of Allotment, subject to deductions under the provisions of the Income Tax Act or any other statutory modification or re-enactment thereof, as applicable. However no interest is to be paid on Application Amount(s) to the ASBA Applicants.
The Company may enter into an arrangement with one or more banks in one or more cities for direct credit of interest to the account of the applicants. Alternatively, the interest warrant will be dispatched along with the Letter(s) of Allotment at the sole risk of the applicant, to the sole/first applicant.
Interest on application amounts received which are liable to be refunded: a) The Company shall pay interest on Application Amounts which is liable to be refunded to the Applicants (other than ASBA Applicants) subject to deduction of income tax under the provision of Section 194A of the Income Tax Act, as applicable, from the date of realization of the cheque(s)/demand draft(s) upto one day prior to the Deemed Date of Allotment. In the event that such date of realization of the cheque(s)/ demand draft(s) is not ascertainable in terms of banking records, we shall pay interest from three days from the date of upload of the Application on the electronic bidding platform of the Stock Exchanges, whichever is later, upto one day prior to the Deemed Date of Allotment, at the rate of 6%. Such interest shall be paid along with the monies liable to be refunded. Interest warrants will be dispatched/credited (in case of electronic payment) along with the letter(s) of refund at the sole risk of the Applicant, to the sole/first Applicant.
b) A tax deduction certificate will be issued for the amount of income tax so deducted.
Issue Opening Date January 03, 2017
Issue Closing Date** January 20, 2017
The Issue shall remain open for subscription from 10 A.M. to 5 P.M. (Indian Standard Time), except that the Issue may close on such earlier date or extended date as may be decided by the Board/ Committee of Directors, as the case maybe, subject to necessary approvals. In the event of an early closure or extension of the Issue, our Company shall ensure that notice of the same is provided to the prospective investors through advertisements in a leading national daily newspaper on or before such earlier date of Issue Closure or initial date of Issue closure, as the case may be
Record Date 15 (fifteen) days prior to the relevant interest payment date, relevant Redemption Date for NCDs issued under this Tranche 1 Prospectus. In case of redemption of NCDs, the trading in the NCDs shall remain suspended between the record date and the date of redemption. In event the Record Date falls on a Sunday or holiday of Depositories, the succeeding working day or a date notified by the Company to the stock exchanges shall be considered as Record Date.
However, record date for the purpose of exercise of call option, if any, shall be as referred to in the "Terms of the Issue - Put/ Call Option in relation to Un-Secured NCD Holders" on page 43 of Tranche Prospectus


SPECIFIC TERMS FOR EACH SERIES OF NCDs

Series I** II# III*** IV** V# VI VII**
Frequency of Interest Payment NA Monthly Annual NA Monthly Annual NA
Minimum Application Rs.10,000 (10 NCDs) across all Series
Face Value/Issue Price Rs.1,000
In Multiples of thereafter 1,000 (1 NCD) 1,000 (1 NCD) 1,000 (1 NCD) 1,000 (1 NCD) 1,000 (1 NCD) 1,000 (1 NCD) 1,000 (1 NCD)
Tenor from Deemed Date of Allotment 400 days 3 years 5 years
Coupon (% per annum) for NCD Category I & II N.A. 8.90% 9.25% N.A. 9.11% 9.50% N.A.
Coupon (% per annum) for Category III N.A. 9.12% 9.50% N.A. 9.35% 9.75% N.A.
Effective Yield (per annum) Category I and Category II 8.63% 9.27% 9.29% 9.27% 9.50% 9.52% 9.50%
Effective Yield (per annum) Category III 8.81% 9.51% 9.54% 9.55% 9.75% 9.77% 9.75%
Mode of Interest Payment Through various mode available.
Amount (Rs./ NCD) on Maturity for Category I & Category II ** Rs.1,095/- Rs.1,000/- Rs.1,000/- Rs.1,305/- Rs.1,000/- Rs.1,000/- Rs.1,575/-
Amount (Rs./NCD) on Maturity for Category III ** Rs.1,097/- Rs.1,000/- Rs.1,000/- Rs.1,315/- Rs.1,000/- Rs.1,000/- Rs.1,593/-
Maturity Date (from Deemed Date of Allotment) 400 days 3 years 3 years 3 years 5 years 5 years 5 years
Put and Call Option NA NA NA NA NA NA NA
Institutional, Non Institutional Category Investor(s) and Individual Category Investor(s) can subscribe to all Series of NCDs.
** Subject to applicable tax deducted at source, if any.
***The Company shall allocate and allot Series III NCDs wherein the Applicants have not indicated their choice of the relevant NCD Series.
#Series II & Series V NCDs would be allotted compulsorily in dematerialized form to all categories of Investors.
Who Can Apply
Categories Category I Category II Category III
QIB Portion Corporate Portion Individual Portion
Allocation Ratio 30% of Overall Issue Size 20% of Overall Issue Size 50% of Overall Issue Size
 
  1. Public financial institutions, scheduled commercial banks, Indian multilateral and bilateral development financial institution which are authorised to invest in the NCDs;
  2. Provident funds, pension funds with a minimum corpus of ` 2500.00 lakhs, superannuation funds and gratuity funds, which are authorised to invest in the NCDs;
  3. Venture Capital Funds/ Alternative Investment Fund registered with SEBI;
  4. Insurance Companies registered with IRDAI;
  5. State industrial development corporations;
  6. Insurance funds set up and managed by the army, navy, or air force of the Union of India;
  7. Insurance funds set up and managed by the Department of Posts, the Union of India;
  8. National Investment Fund set up by resolution no. F. No. 2/3/2005-DDII dated November 23, 2005 of the Government of India published in the Gazette of India; and
  9. Mutual Funds.
  1. Companies within the meaning of section 2(20) of the Companies Act, 2013; statutory bodies/ corporations and societies registered under the applicable laws in India and authorized to invest in the NCDs;
  2. Trusts including Public/private charitable/religious trusts which are authorized to invest in the NCDs;
  3. Scientific and/or industrial research organizations, which are authorized to invest in the NCDs;
  4. Partnership firms in the name of the partners;
  5. Limited liability partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009);
  6. Association of Persons; and
  7. Any other incorporated and/ or unincorporated body of persons
  1. Resident Indian individuals; and
  2. Hindu undivided families through the karta.
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SEBI/ Regulatory Registration Nos.: BSE:INB/INF 010607233 NSE:INB/INF/INE 230607239. Merchant Banking: INM000010973 DP Reg: IN-DP-CDSL-28-99 DP ID - CDSL 12013200
© Copyright 2009. Asit C.Mehta Investment Interrmediates Ltd. (ISO 9001:2008 Certified Company)