Shriram Transport to raise up to Rs 750 cr via NCD issue

Vehicle finance company Shriram Transport Finance on Thursday said it will raise up to  Rs 750 crore through a non-convertible debenture (NCD) issue.

The NCD issue aggregating upto Rs 375 crore with an  option to retain over-subscription up to Rs 375 crore for issuance of additional NCDs opens for subscription on  July 16. The effective yield for investors will be in the range of 9.65-11.15 per cent with a maturity period of  three-to-five years.
The issue is open to individual, institutional, non-institutional and high networth investors. The last date for  application for the NCD issue of this deposit-taking non-banking finance company July 29.
"The funds raised through this issue will be used for various financing activities including lending and investments,  to repay existing loans and for business operations and working capital requirements," managing director and chief  executive Umesh Revankar told reporters in New Delhi.
According to the company, the minimum application size is 10 bonds of Rs 1,000 face value each. He further said the  company's total borrowing would be at the same level as last fiscal.
The commercial-vehicle financing company, which had assets under management of Rs 50,000 crore as of last fiscal, also  expects to have a 15 per cent growth in its loan book in the current financial year.