Sharemasterindia.com: Srei Infrastructure Finance shares rose over 4 per cent to hit an intraday high of Rs 35.75 on Tuesday, following the company's plans to raise Rs 200 crore via non-convertible debentures (NCDs) in its efforts to reduce finance costs.
NCD is a debt instrument that cannot be converted into share or equity.
Mortgage finance company Srei Infrastructure informed in a filing to the BSE on Tuesday the NCD issue will consist of 20 lakh secured, redeemable NCDs of face value of Rs 1,000 each.
Srei Infrastructure group CEO Moses Harding told NDTV that the NCD issue is part a periodic exercise by the company, which plans to shift focus from wholesale sources of funds to retail sources of funds.
The company's current Rs 200 crore issue can retain oversubscription of up to Rs 1,000 crore. "In this issue we have the right to retain oversubscription up to Rs 1000 crore," he said.
Rating agency Care has assigned a 'CARE AA-' rating to the NCDs, whereas Brickwork has a 'BWR AA' rating, the company said in the filing.
"Instruments with a rating of 'CARE AA- (Double A Minus)' by CARE and 'BWR AA (BWR Double A)' by BRICKWORK are considered to have high degree of safety regarding timely servicing of financial obligations," the filing noted.
As of 2:27 p.m., shares in Srei Infra were trading over 1 per cent higher at Rs 34.70 apiece on the BSE, outperforming the broader markets.
