Personal Finance Blog India –

NCD Issue: Shriram City Union Finance Ltd.

Before few months,there was a IPO wave and now it is replaced by NCDs.Today equity market is not doing well and investors are in search of something that can offer a good rate of returns on their investment.After Shriram Transport and currently ongoing IIFL ncd issue,Shriram City Union Finance NCD is on the way to hit the bond market.Shriram City Finance is  part of Shriram Group and non-banking finance company registered under RBI.

Company Offerings:

1.Product Finance: Financing of two wheelers,appliances and other commercial goods.

2.Personal Loans.

3.Loan against gold.

4.Small enterprise finance.

Key Features of Shriram City Finance NCD:

  1. Public Issue of  Secured NCDs aggregating upto Rs. 37,500 Lakhs with an option to retain over subscription of Rs. 37,500 lakhs ,aggregating to a total of Rs. 75,000 Lakhs.
  2. NCDs can be held in demat mode only.
  3. Face value: Rs.1000.
  4. Minimum Application amount: 10 NCDs i.e. Rs.10,000/-.
  5. Issue open date: 11 August 2011.
  6. Issue closing date: 27th Aug 2011.There is option of early closure of extension of end date.
  7. Interest Rates for Retail investors:  
    Options 1 2
    Tenure 60 Months 36 Months
    Interest Rate for Reserved Cateogary 12.10% payable p.a 11.85%  payable p.a.
    Interest Rate for Un-reserved Cateogary 11.85% payable p.a 11.60%  payable p.a.

    Reserved Catepgary: Individuals applying for less than 5 Lakh combining options 1 and 2.

    Un-reserved cateogary: Individuals applying for more than 5 lakhs combining options 1 and 2.

    4.Interest will be payable annually and there is no cumulative option.Interest will paid on 1st April of each year from year 2012.

    5.Credit Rating: CRISIL “AA-” and CARE AA upto amount of Rs. 75,000 Lakhs. Both indicates low credit risk and timely repayment of interest and principal by company.

    6.Tax benefits: As always interest received is taxable and this is nota  tax saving issue.


Category: Fixed Income


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