SREI Infrastructure Finance Ltd. (SIFL)., entered the segment of infrastructure financing in 1989 in a limited capacity as a construction equipment financier. During the pre-liberalization era India's infrastructure segment was largely dominated by few players with negligible role for private sector players. The economic liberalisation in 1991 widened the opportunity for Srei Infra to mobilize resource and fund larger number of customers across regions. Srei Infra persisted through the ups and downs of the business cycles emerged as one of the strong players in the infrastructure financing space with an over 25 years track record of performance and credentials. The Company was initially registered with Reserve Bank of India on August 1, 1998 as a deposit taking Non-Banking Financial Company, In April 2010, the Company decided to convert itself in to Non-Deposit Taking NBFC in order to qualify for registration as an 'Infrastructure Finance Company' and hence the Company decided not to accept or renew public deposits w.e.f April 20, 2010. Currently, SIFL has been classified as Infrastructure Finance Company (NBFC-ND-SI) w.e.f March 31, 2011. On September 26, 2011 the Company was notified as a Public Financial Institution (PFI) by the MCA. For last three fiscals, SIFL has (on a consolidated basis) posted total revenue/net profits of Rs 2862.10 cr. / Rs 61.53 cr. (FY16), Rs 3459.79 cr. / Rs 242.76 cr. (FY17) and Rs 3989.55 cr. / Rs 399.73 cr. (FY18). For these fiscal ends, it's Net NPAs stood at 3.09%, 2.00% and 1.75% respectively. or the first nine ended on 31.12.18 it has earned net profit of Rs 341.93 cr. on a total revenue of Rs 4809.02 cr. Post issue, its current debt equity ratio of 4.72 ( as on 31.12.18) will stand enhanced to 5.22. As on 31.12.18, SIFL has a total AUM of Rs 49,913 cr., paid up equity capital of Rs 503.24 crore and a net worth of Rs 4195 cr. This issue is rated BWR AA+ / Stable by Brickworks Ratings India Private Limited. The rating of NCDs by BWR and ACUITE indicate that instruments with this rating are considered to have the highest degree of safety regarding timely servicing of financial obligations. Such instruments carry the lowest credit risk. Good Rating, strong financials and lucrative coupon rates make this offer a worthy option for investors looking for long term fixed income. We give SUBSCRIBE rating to debt issue.
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