SREI Equipment Finance Ltd

SREI EFL is a non-banking finance company with a principal focus on financing Infrastructure equipment. It provides financial products & services to companies operating in the construction, mining, ports, railways, healthcare, oil & gas etc., sectors. This issue is open to all Indian residents, HUFs and Institutions.Category I – Institutional Investors – 20% of the issue is reservedCategory II – Non-Institutional Investors, Corporates – 20% of the issue is reservedCategory III – Retail Individual Investors including HUFs – 60% of the issue is reserved Merits to invest in NCD1. AA+ Credit rating means very less likely hood of credit default2. Part of well known conglomerate – SREI3. The interest rates are 2% higher than your regular Bank FDs4. No TDS if invested in Demat Form Demerits to invest in NCD1. The interest rates trend is rising. In last two months SBI has raised its interest rate on fixed deposit by 0.75%. It seems like the interest rates would go up more in near future. Hence should not lock your investment for long term.2. The profits of the company declined as compared to the previous year3. There are NCDs available in secondary market which have higher yields with similar rating. The problem is low liquidity and hence is difficult to buy in large numbers.4. The present Tax Free Bonds are offering yields up to 6.5% in secondary market, which is better investment for People in highest tax bracket.5. One can also invest in high rated company fixed deposits.

• 1 Mr. Lavjibhai Valjibhai Savaliya
• 2 Mr. Lalitkumar Chandhulal Vasoya