Srei Equipment Finance is planning to raise up to Rs 500 crore by issuing non-convertible debentures (NCDs).
"The company is proposing a public issue of secured, redeemable NCDs of face value of Rs 1,000 each amounting up to Rs 250 crore, with an option to retain over-subscription aggregating up to Rs 500 crore," Srei said in a statement.
The money raised through the issue will be used to fund the company's growth plans for infrastructure equipment financing.
"This is the first time the company is coming up with a NCD issue. NCDs give attractive returns for retail investors compared to similar investment products. The funds raised would be used to fund our growth plans for infrastructure equipment financing," Srei Equipment Finance CEO D K Vyas said.
NCDs are loan-linked bonds issued by a company that cannot be converted into stock and usually offer higher interest rate than that of convertible debentures.
Srei Capital Markets and Edelweiss Financial Services are lead Managers to the issue.
Srei Equipment Finance, jointly promoted by Srei Infrastructure Finance and BNP Paribas Lease Group, manages assets of worth over Rs 18,051 crore as on September 30, 2014.
