Srei Infra seeks Sebi nod to raise Rs 100 crore from NCDs
NCDs are loan-linked securities issued by a company and cannot be converted into stocks. They usually carry a higher interest rate than a convertible debenture.
By PTI | Updated:
MUMBAI: Srei Infrastructure Finance has sought market regulator Sebi's approval for raising up to Rs 100 crore through non-convertible debentures (NCDs).
NCDs are loan-linked securities issued by a company and cannot be converted into stocks. They usually carry a higher interest rate than a convertible debenture.
"Public issue by Srei Infrastructure Finance Ltd of secured redeemable non-convertible debentures of face value of Rs 1,000 each, for an amount up to Rs 1,000 million," the company said in the draft prospectus filed with Sebi.
The funds raised through the issue will be utilised by the company for various financing activities, to repay existing loans and for business operations including capital expenditure and working capital requirements.
ICICI Securities, A K Capital Services, Darashaw & Company and Srei Capital Markets are the lead managers to the issue, as per the draft prospectus.
The NCDs are proposed to be listed on BSE and NSE. In May, this year, the board of Srei Infrastructure Finance had approved raising funds not exceeding Rs 1,500 crore by way of public issue of debentures, in one or more tranches during 2013-14.
Indian companies have mopped up over Rs 15,000 crore in the April-November period by issuing non-convertible debentures (NCDs) to retail investors, nearly three times the amount that was targeted by such offerings.
NCDs are loan-linked securities issued by a company and cannot be converted into stocks. They usually carry a higher interest rate than a convertible debenture.
"Public issue by Srei Infrastructure Finance Ltd of secured redeemable non-convertible debentures of face value of Rs 1,000 each, for an amount up to Rs 1,000 million," the company said in the draft prospectus filed with Sebi.
The funds raised through the issue will be utilised by the company for various financing activities, to repay existing loans and for business operations including capital expenditure and working capital requirements.
ICICI Securities, A K Capital Services, Darashaw & Company and Srei Capital Markets are the lead managers to the issue, as per the draft prospectus.
The NCDs are proposed to be listed on BSE and NSE. In May, this year, the board of Srei Infrastructure Finance had approved raising funds not exceeding Rs 1,500 crore by way of public issue of debentures, in one or more tranches during 2013-14.
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Indian companies have mopped up over Rs 15,000 crore in the April-November period by issuing non-convertible debentures (NCDs) to retail investors, nearly three times the amount that was targeted by such offerings.
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