Shriram Transport Fin plans to raise upto Rs 700 cr via NCDs

Non-banking financial company Shriram Transport Finance Company Thursday said it plans to raise up to Rs 700 crore through non-convertible debentures (NCDs).

The base size of the public issue is Rs 200 crore with an option to retain an additional amount of up to Rs 500 crore from oversubscription, the company said in a release.

The issue will open for subscription on January 7 and is scheduled to close on January 31.

"The funds raised through this issue will be used for onward lending, financing, and for repayment or prepayment of the interest and principal of existing borrowings of the company and for general corporate purposes," the release said.

The bonds are of three different maturities, three, five and 10 years, with monthly, annual and cumulative payment options.

The bonds, which are issued in three tranches, bear a fixed rate of interest, and offered under seven different series.

Its Series I and II have monthly interest payment options have a tenure of five years and 10 years respectively, and the monthly coupon shall be 9.12 percent per annum and 9.30 percent per annum, respectively that is an annualised yield of 9.50 percent per annum and 9.70 percent per annum, respectively.

Series III, Series IV and Series V, interest payable annually, have a tenure of 3 years, 5 years and 10 years, respectively, and the coupon would be 9.40 percent per annum, 9.50 percent per annum and 9.70 percent per annum, respectively.

Series VI and VII are cumulative options, having a tenure of 3 years and 5 years respectively, and have an effective yield of 9.40 percent per annum and 9.50 percent per annum, respectively.

Additionally, senior citizens under category III and category IV are entitled to an additional incentive of 0.25 percent per annum across all series.

The NCDs are proposed to be listed on BSE and NSE. Lead managers to the issue are Axis Bank, A K Capital Services, Edelweiss Financial Services, JM Financial and Trust Investment Advisors.