SREI Equipment Finance Limited NCD September 2019 Review

SREI Equipment Finance Limited NCD September 2019 Review

Hello friends, today I have come with an interesting topic. From today I will start writing on NCD and I will give my reviews on it. So don't forget to check out these posts. Today I will tell about SREI Equipment Finance Limited NCD. So let's start. 

SREI equipment finance limited is a leading financier in the construction, mining and allied equipment sector. It basically gives loan for above purposes. Till now company has 90 branches in 21 states. Talking about financials, this company has net worth of ₹2790 crore and PAT ₹267 crore as on June 2018.

Important Details Of This NCD

This issue will be open from 19th August 2019 to 18th September 2019. So if you want to invest in this NCD then you must apply on or before 18th September 2019.
The issue size is 100 crore. 75% of this amount will be used for lending purpose and 25% of the amount will be used for general corporate use.

Face value of ncd is ₹1000.
Issue price of ncd is ₹1000.
Minimum lot size is 10.
Minimum amount to invest is ₹10000.
This ncd will be listed in BSE.

There are two different ratings on this NCD. Brickwork Ratings India Private Limited has given BWR AA ( outlook negative ) rating where as Acuite Rating Limited has given AA- ( outlook stable ) rating on this NCD.


Following is the chart for interest rate payments and different options.

Interest rate of NCD

Review of SREI Equipment Finance Limited NCD issue Aug-Sep 2019

Though there are negative rating on this ncd, still I think one should invest in this NCD as it is offering a good % of interest. Second thing is it is secured ncd so one should take a little risk. Moreover I wouldn't recommend it for longer term but for short term I will definitely advise to invest ( 1 yr 1 month ).

( Disclaimer : I have invested in this NCD. )

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