SREI Infra gains after early closure of debenture issue by subsidiary

SREI Infrastructure Finance rose 2.65% to Rs 81.20 at 14:15 IST on BSE after the company announced that its material subsidiary exercised the option of early closure of the public issue of debentures.

The announcement was made during market hours today, 6 January 2016.

Meanwhile, the BSE Sensex was down 9.53 points, or 0.04%, to 26,868.71.

On the BSE, 1.08 lakh shares were traded in the counter so far, compared with an average volume of 1.87 lakh shares in the past one quarter. The stock had hit a high of Rs 81.70 and a low of Rs 79.30 so far during the day. The stock had hit a 52-week high of Rs 91.95 on 10 November 2016. The stock had hit a 52-week low of Rs 42.35 on 24 May 2016.

The stock had underperformed the market over the past one month till 5 January 2017, remaining unchanged compared with the Sensex's 2.01% rise. The scrip had, however, outperformed the market in past one quarter, gaining 7.18% as against the Sensex's 4.76% fall.

The small-cap company has an equity capital of Rs 503.09 crore. Face value per share is Rs 10.

SREI Infrastructure Finance announced that Srei Equipment Finance (SEFL), a material subsidiary of the company has exercised the option of early closure of the public issue of secured redeemable non-convertible debentures and the issue shall now close today, 6 January 2017.

The issue opened for subscription on 3 January 2017 and was scheduled to close on 20 January 2017.

SREI Infrastructure Finance had announced on 26 December 2016 that Srei Equipment Finance is proposing a public issue of 25 lakh secured redeemable non-convertible debentures of face value of Rs 1,000 each for an amount upto Rs 250 crore with an option to retain over subscription upto Rs 500 crore.

SEFL is a leading equipment finance institutions. The object of the issue was to raise funds for various financing activities, to repay the company's existing loans and business operations etc.

On consolidated basis, SREI Infrastructure Finance's net profit jumped 438% to Rs 61.87 crore on 30% rise in total income to Rs 1106.65 crore in Q2 September 2016 over Q2 September 2015.

SREI Infrastructure Finance is a leading infrastructure financing conglomerate in India.

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