Srei Infra gains on plans to raise funds via NCDs

The company plans to raise up to Rs 150 crore to fund various business operations and repay existing loans.

Srei Infrastructure Finance has jumped by over 2% at Rs 33.50 after the company announced plans to raise up to Rs 150 crore through secured, redeemable, non-convertible debentures.

The company will issue secured, redeemable, non-convertible debentures of face value of Rs 1,000 each for an amount up to Rs 75 crore, with an option to retain over-subscription up to Rs 75 crore, aggregating a total of Rs 150 crore, the company said in a release. The issue opened for subscription on May 9, 2014 and closed on June 9, 2014, with an option for early closure or extension by such period, which may be decided by the Board.

The NCD offers an annualised return up to 12.00% per annum with a credit rating of "CARE AA-" by CARE and "BWR AA" by Brickwork, indicating a high degree of safety regarding timely servicing of financial obligations, the release said.

The funds raised will be used for various financing activities, to repay existing loans and business operations including capital expenditure and working capital requirements, subject to applicable statutory and/or regulatory requirements.