Public Issue of Secured Redeemable

Non-Convertible Debentures

Issue Opens: 3rd January 2017

Issue Closes: 20th January 2017@

Srei Equipment Finance Limited

Registered Office: Vishwakarma, 86C, Topsia Road (South), Kolkata 700 046.
Tel: +91 33 6639 4700; Fax: +91 33 2285 7542; CIN: U70101WB2006PLC109898

@The Issue shall remain open for subscription on Working Days from 10 A.M. to 5 P.M. (Indian Standard Time) during the period indicated above, except that the Issue may close on such
earlier date or extended date as may be decided by the Board/ Executive Committee of Directors, as the case maybe, subject to necessary approvals. In the event of an early closure or
extension of the Issue, our Company shall ensure that notice of the same is provided to the prospective investors through advertisements in a leading national daily newspaper with wide
circulation on or before such earlier date of Issue Closure or initial date of Issue closure, as the case may be. On the Issue Closing date, the Application Forms will be accepted only between
10 a.m. to 3 p.m. (Indian Standard Time) and uploaded till 5 p.m. or such extended time as may b e permitted by the Stock Exchanges. For further details please refer to General Information
on page 41 of the Prospectus

Disclaimer:
Capitalized term use and not define shall have the same meaning assigned to such terms in the Prospectus dated December 21, 2016.
Disclaimer Clause of BSE: It is to be distinctly understood that the permission given by BSE Limited should not in any way be deemed or construed that the
Prospectus has been cleared or approved by BSE Limited nor does it certify the correctness or completeness of any of the contents of the Prospectus. The investors
are advised to refer to the Prospectus for the full text of the Disclaimer clause of BSE Limited.
Disclaimer Clause of NSE: It is to be distinctly understood that the permission given by NSE should not in any way be deemed or construed that the Offer Document
has been cleared or approved by NSE nor does it certify the correctness or completeness of any of the contents of the Offer Document. The investors are advised
to refer to the Offer Document for the full text of the Disclaimer Clause of NSE.
Disclaimer Clause of Use of NSE Electronic Platform: It is to be distinctly understood that permission the permission given by NSE to use their network and
Online Platform for facilitating applications for public issue of debt securities shall not in any way be deemed or construed as compliance with statutory and other
requirements by Company, Lead Managers, etc , is cleared or approved by NSE; nor does it any manner warrant, certify or endorse the correctness or completeness
of any of the compliance with the statutory and other requirements nor does it take any responsibility for the financial or other soundness of this Issuer, its promoters,
its management or any scheme or project of this Issuer.
Disclaimer Clause of RBI: RBI has issued certificate of registration dated June 12, 2007 and certificate of registration dated September 3, 2008 re-classifying our
company under the category asset finance company non deposit taking. It must be distinctly understood that the issuing of this certificate and granting a
license and approval by RBI in any other matter should not in any way, be deemed or construed to be an approval by RBI to this prospectus nor should it be deemed
that RBI has approved it and the RBI does not take any responsibility or guarantee the financial soundness of our company or for the correctness of any of the
statements made or opinions expressed by our company in this connection and for repayment of deposits / discharge of liabilities by our company.
Disclaimer of the Issuer: Srei Equipment Finance Limited is, subject to market conditions and other considerations, proposing a public issue of 2,500,000 Secured
Redeemable Non-Convertible Debentures of Face Value of `1,000/- each (the Debentures or the NCDs), amounting to `2,500 million (Base Issue Size), with
an option to retain oversubscription up to 2,500,000 NCDs of `1,000/- each for an amount upto `2,500 million, aggregating up to `5,000 million (Overall Issue
Size) and is being offered by way of the Prospectus dated December 21, 2016 (The Prospectus), has filed with the Registrar of Companies, West Bengal, the
Securities and Exchange Board of India ,BSE and NSE. The Investors are advised to take any decision to invest in the NCDs pursuant to their examination of the
Issuer and on the basis of the disclosures made in the Prospectus. Please see the section titled Risk Factors beginning on page 15 of the Prospectus for the risks
in this regard.
Availability of Prospectus: The Prospectus is available on our website at www.srei.com, on the website of the stock exchange at www.bseindia.com and
www.nseindia.com and also on the respective websites of the Lead Managers at www.edelweissfin.com, www.akcapindia.com, www.karvyinvestmentbanking.com,
www.srei.com and www.trustgroup.in. Investors proposing to participate in the Issue should invest only on the basis of information contained in the Prospectus
dated December 21, 2016. Physical copies of the Prospectus can be obtained from the Companys Registered Offices and Corporate offices, Offices of the Lead
Managers, Lead Brokers and sub-brokers, Trading Members and Designated Branches of the SCSBs.

Contents

Srei Equipment Finance Limited The Issuer

Srei Equipment Finance Limited Financial Performance

Issue Structure

Investment Consideration

Srei Equipment Finance Limited

The Issuer

About SREI Equipment Finance Limited

Srei Equipment Finance Limited (SEFL) is one of Indias leading non-banking financial
company in the organized equipments financing sector with a principal focus on
financing infrastructure equipment.

It is registered with RBI as a non-deposit taking systemically important, non-banking

financial company (NBFC-ND-SI). It is classified as Assets Finance Company (AFC)
within the meaning of NBFC.

It provides financial products and services to companies operating in the construction,

mining, technology and solutions, healthcare, ports and railways, oil and gas, agriculture
and transportation sectors. Financial products and services offered by SEFL comprise
loans, leases, rentals and fee-based services.

SEFL enjoys a pan-India presence in approximately

21 states, including 89 branch offices with more than
60,000 customers as on September 30, 2016.

SEFL has achieved total AUM of `199,345 million

and net worth of `23,956 million as on September
30, 2016.

Board of Directors
Hemant Kanoria, Chairman & Managing Director
Mr. Hemant Kanoria has over 36 years of experience in industry, trade and financial services
Presently serving as Board Member in the Indian Institute of Information Technology, Guwahati, Neotia University and
New Delhi Institute of Management
He has held the position of Chairman of FICCI National Committee on Infrastructure and also served as Board of
Governers of Indian Institute of Management, Calcutta (IIM-C) Industry.

Sunil Kanoria, Vice Chairman

Mr. Sunil Kanoria is a Chartered Accountant with more than 28 years of experience in the financial service industry.
Presently the President of The Associated Chambers of Commerce & Industry of India, a nominated Council member of
The Institute of Chartered Accountants of India and a governing body member of the Construction Industry Development
Council.

Kora Ipe Puthenpurockal, Non-Executive & Independent Director

Mr. Puthenpurockal has a masters degree from Indian Institute of Technology, Mumbai and has 36 years of experience
in the field of corporate banking.
He was senior advisor to the CEO and country manager of BNP Paribas India.

Board of Directors
S. Chatterjee, Non-Executive & Independent Director

Over 45 years of experience in Retail, Commercial & Investment Banking and NBFC
Former Executive Director, Axis Bank Limited, Mumbai
He was a member of the Board of Directors of Nabil Bank, Nepal
Extensive exposure in the area of International Banking having worked in SBI, London and as the Chief Representative in
Washington D.C having worked closely with IFC, World Bank and IMF

Dr. Tamali Sen Gupta, Non-Executive & Independent Director (Additional Director)
Over 30 years experience in legal field and is a specialist in transnational legal transactions in media, real estate
development, insurance and infrastructure
Widely published author and a Fellow of the Centre of International Legal Studies at Salzburg. Proprietor of T. Sengupta &
Associates, a corporate law practice based in New Delhi.

Key Strengths
Well positioned to access and appraise borrowers in
the growing Indian infrastructure financing sector
Developed extensive infrastructure sector knowledge and relationships with customers.
Provide a broad spectrum of financial products and services.

Strong Promoter relationship

and brand
SEFL is a wholly owned subsidiary of Srei Infrastructure Finance Limited.
Srei Infra is a well established brand domestically in infrastructure financing business
this provides with a significant competitive advantage.

Experienced Board and

Senior Management
Our senior and middle management team comprise officials with significant experience
in the financial services sector.
In-depth industry knowledge and loyalty of our management and professionals provide
us with a distinct competitive advantage.

Leading infrastructure equipment

financing NBFC in India
With a AUM of `199,345.33 million as on Sept 30, 2016, SEFL is one of the leading
equipment financing organization in India.
Widespread branch network enables us to service and support our existing customers.

Key Strengths

Pan India Presence

Presence in approximately 21 states, including 89 branches across India

Developed a unique relationship based distribution network, managed by the relationship managers as entrepreneurs,
and SEPs for our retail business which helps in commanding a better presence and penetration in markets.

Competitive and Diversified

sources of Funding

Diversified funding sources like banks loan, issuance of NCDs, ECB, Commercial Paper, securitization etc.

Effective risk management

Established risk management system through robust processes to mitigate the risk and enhance the financial results.

Equipment Finance Business Verticals

Infrastructure
Equipment

Finance / lease for purchase of infrastructure equipment like earthmoving equipment,

material handling and road construction equipment etc.
Target customers include Retail, SME and Strategic players
Average tenor of financing varies from 3-5 years

Technology
and Solutions
Financing

Finance/lease for purchase of hardware, software and office equipment

Target customers are various institutional and corporate players
Tenor of loan provided varies from 1-5 years

Health care
Equipment
Financing

Finance/lease for purchase of all major medical equipment

Medical equipment includes x-ray machine, CT and MRI scaners etc.
Target customers include hospitals and diagnostic centers

Agricultural
and Farming
Equipment

Finance for purchase of all major farming, agricultural and allied equipment
Farming equipment incudes tractors, which are widely used for sowing, tilling etc.
Target customers basically include contract farmers

Used
Equipment

Finance for used equipment to various customers.

Used equipment includes construction and mining equipment
Target customers basically Retail and SME segment.

10

Srei Equipment Finance Limited

Financial Performance

11

Financial Performance Highlights*

(` in Mn.)

Half Year Ended

Sept 30, 2016
(Audited)

For the year ended

March 31, 2016
(Audited)

For the year ended

March 31, 2015
(Audited)

For the year ended

March 31, 2014
(Audited)

Assets Under Management

199,345

185,977

183,484

181,649

Net worth

23,956

23,218

22,088

20,391

Revenue from Operations

12295

26,138

26,014

26,179

Profit After Tax

688

1152

1,530

2,253

Gross NPA (%)

2.72

2.95

4.98

4.97

Net NPA (%)

1.87

1.99

3.83

4.07

Capital Adequacy Ratio (%)

18.70

19.62

17.05

17.13

Particulars

*Financial figures are being rounded off.

12

Issue Structure

13

Issue Structure
Issuer

Instrument &
Issue size
Credit Rating &
Security Cover

Use of Proceeds

Issue Period

Listing & Depositories

Srei Equipment Finance Limited (Company or Issuer)

Public Issue of Secured Redeemable NCDs of face Value of `1,000/- each, for an amount up to `2,500 million
(Base Issue) with an option to retain oversubscription up to additional `2,500 million aggregating to
`5,000 million (Overall Issue Size).
BWR AA+ (BWR Double A plus) (Outlook Stable) by Brickwork Ratings India Private Limited (Brickwork)
SMERA AA/Stable (SMERA Double A/Stable) by SMERA Ratings Limited (SMERA)
1.0 time of the total outstanding amount of NCDs and interest thereon.
The Net Proceeds raised through this Issue will be utilized for following activities in the ratio provided as below:
I. For the purpose of lending/ repayment of loan - minimum 75% of the Net Proceeds of the Issue
II. For General Corporate Purposes up to 25% of the Net Proceeds of the Issue. The unutilized amount if any
will be used for purpose of lending/ repayment of loan.

Issue Opens: January 03, 2017

Issue Closes: January 20, 2017@ (with an option for early closure or extension)

Proposed to be listed on BSE and NSE. (BSE shall be the Designated Stock Exchange)
National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL)

14

Lead Managers

Lead Managers
*

*Srei Capital Markets Limited is a wholly owned subsidiary of Srei Infrastructure Finance Limited, which is the Promoter of the Company
and shall only be involved in marketing of the Issue.

Allocation Ratio
Investor Category

Basis of allotment on a first come first serve basis

Category I (Institutional Portion)

30% of the Overall Issue Size

Category II (Non-Institutional Portion)

20% of the Overall Issue Size

Category III (Individual Category Portion)

50% of the Overall Issue Size

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Issue Structure
Series

I**

II#

III***

IV**

V#

VI

VII**

Frequency of Interest Payment

NA

Monthly

Annual

NA

Monthly

Annual

NA

Minimum Application

`10,000/- (10 NCDs) across all Series

Face Value/Issue Price of NCDs (` / NCD)

`1,000/1000
(1NCD)

1000
(1NCD)

1000
(1NCD)

1000
(1NCD)

1000
(1NCD)

1000
(1NCD)

1000
(1NCD)

400 days

3 years

3 years

3 years

5 years

5 years

5 years

Coupon (% per annum) for NCD Holders

in Category I & Category II

N.A.

8.90%

9.25%

N.A.

9.11%

9.50%

N.A.

Coupon (% per annum) for NCD Holders

in Category III

N.A.

9.12%

9.50%

N.A.

9.35%

9.75%

N.A.

Effective Yield (per annum) for NCD Holders

in Category I and Category II

8.63%

9.27%

9.29%

9.27%

9.50%

9.52%

9.50%

Effective Yield (per annum) for NCD

Holders in Category III

8.81%

9.51%

9.54%

9.55%

9.75%

9.77%

9.75%

In Multiples of (`)
Tenor from Deemed Date of Allotment

Mode of Interest Payment

Through various mode available

Amount (`/ NCD) on Maturity for

NCD Holders in Category I & Category II **

`1,095/-

`1,000/-

`1,000/-

`1,305/-

`1,000/-

`1,000/-

`1,575/-

Amount (`/ NCD) on Maturity for

NCD Holders in Category III **

`1,097/-

`1,000/-

`1,000/-

`1,315/-

`1,000/-

`1,000/-

`1,593/-

Institutional, Non-Institutional Category Investor(s) and Individual Category Investor(s) can subscribe to all Series of NCDs.
** Subject to applicable tax deducted at source, if any.
*** Our Company shall allocate and allot Series III NCDs wherein the Applicants have not indicated their choice of the relevant NCD Series.
#Series II & Series V NCDs would be allotted compulsorily in dematerialized form to all categories of Investors.

16

Issue Structure
Type of Instrument

Secured Redeemable Non-Convertible Debentures

Security

The principal amount of the NCDs to be issued in terms of the Prospectus together with all interest
due on the NCDs in respect thereof shall be secured by way of exclusive first charge in favour of the
Debenture Trustee on specific present and/or future receivables/assets and/or first pari passu charge
on an identified immovable property of our Company as may be decided mutually by our Company
and the Debenture Trustee. Our Company will create appropriate security in favour of the Debenture
Trustee for the NCD Holders on the assets adequate to ensure 100% asset cover for the NCDs (along
with the interest due thereon).

Interest on
Application Amount

The Company shall pay to the successful Applicants, interest at 8% on the Application Amount
allotted, from the date of realization of the Application Amount through cheque(s)/demand
draft(s)/any other mode up to 1 (one) day prior to the Deemed Date of Allotment, subject to
deductions under the provisions of the Income Tax Act or any other statutory modification or
re-enactment thereof, as applicable. However no interest is to be paid on Application Amount(s) to
the ASBA Applicants.

Interest on Refund Amount

The Company shall pay interest on Application Amounts which is liable to be refunded to the
Applicants (other than ASBA Applicants) at the rate 6% subject to the deduction of income tax as per
the Income Tax Act, as applicable from the date of realization of the cheque(s) /demand draft (s) upto
one day prior to the Deemed Date of Allotment. In the event that such date of realization of the
cheque(s)/ demand draft(s) is not ascertainable in terms of banking records, we shall pay interest
from three days from the date of upload of the Application on the electronic bidding platform of the
Stock Exchanges, whichever is later, upto one day prior to the Deemed Date of Allotment. Such
interest shall be paid along with the monies liable to be refunded.

17

Investment Consideration

18

Benefits of Investment in Srei NCDs

9.75% Highest Coupon per annum for Individual Category Investors for Series VI in 5 years tenor.

Return

Security

Liquidity

Mode of
Allotment

9.50% Highest Coupon per annum for Institutional and Non Institutional Category Investor for
Series VI in 5 years tenor.

Exclusive First Charge in favour of the Debenture Trustee on Specific present and/or future
receivables/asset of the Company and cover of 1.0 time of the total outstanding amount of the
NCDs and interest thereon, and first pari passu charge on identified immovable property.

Proposed to be listed on BSE and NSE. (BSE shall be the designated Stock Exchange)
Trading will be in dematerialized form only.

The NCDs will be issued in physical as well as dematerialized form to Individual investors only
and in dematerialized form to other Categories of Investors.
Series II & Series V NCDs would be allotted compulsorily in dematerialized form to all Categories
of Investors.

19

Customer Contact Points

Toll Free: 18004197734
(9am to 6pm, Monday Saturday)
Mail us: connect@sreibonds.com
Website: www.srei.com
www.facebook.com/SreiDebtCapitalMarket
https://twitter.com/SreiBonds

https://sreibonds.com/customer/login
Registered Office: Vishwakarma, 86C, Topsia Road (South), Kolkata 700 046; Tel: +91 33 6160 7734; Fax: +91 33 2285 7542;
Corporate Office: Room no 12 & 13, 2nd Floor, 6A, Kiran Shankar Roy Road, Kolkata - 700 001
Head Office: Plot No Y-10, Block EP, Sector-V, Salt Lake City, Kolkata-700091; Tel: +91 336639 4700;
Corporate Identification No: U70101WB2006PLC109898
Company Secretary and Compliance Office: Mr. Naresh Mathur
Phone: +91 33 6160 7734, Toll Free no.:1800 419 7734, Email-id: connect@sreibonds.com

20

Thank You

21