Interest rate auction hits Rs100 crore

Over Rs 100 crore of business was done at an interest rate auction conducted in the city on infrastructure finance deals over the week-end.

Srei Infrastructure Finance Ltd conducted the auction of interest rates, called 'Paison Ki Nilami', which allowed participants to bid for the lowest interest rates on finance of infrastructure equipment.

The auction was designed to permit bidders to bid on lowest rate of interest at which they sought asset-financing in a rising interest rate regime.

Bidders for infrastructure equipment hammered down interest rates gradually from a peak of 9.99 per cent to a minimum of 3.69 per cent.

The equipment pool for 'Paison Ki Nilami' comprised more than 300 new assets.

They included excavators, tippers, dumpers, loaders, transit mixers and compactors from leading manufacturers like Volvo, JCB, Ingersoll Rand, Tata Motors, Puzzolana and Indital Construction with standard guarantee and warrantee from the original manufacturer at the best available price.

Close to 300 bidders participated and 280 bidders succeeded on some piece of equipment. Some select manufacturers offered equipment directly to the bidders.

Hemant Kanoria, vice-chairman and managing director of Srei, said the 300 bidders in 'Paison Ki Nilami' drummed up business of over Rs 100 crore.

He said Srei would use this as a new beginning to offer customers equipment at competitive prices and lowest interest rates.

Srei would take 'Paison ki Nilami' to other cities soon, he added.

The auction was conducted by Mandira Bedi and followed by a performance by singer Gurdas Mann.