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Shriram Transport Finance To Raise 750 Crore Through NCD Issue July-2013


SHRIRAM TRANSPORT FINANCE COMPANY – arm of Chennai based Shriram Group & One of the leading Non-banking Finance company engaged in financing of commercial vehicles has filed a draft prospectus for NCD issue of 375 crore with option of retaining over subscription up to Rs.375/- crore ..with total subscription of Rs.750 crore.

Shriram Transport NCD issue is expected to hit the market any time in July-2013.(issue open & close dates are as follows)

  • Issue open date: July 16,2013.
  • Issue close date: July 29, 2013.

//Pl.Note: LAST DATE OF ISSUE UPDATED: 24/07/2013

This NCD  issue is more secured than their fixed deposit scheme as investors investing in this issue will get cover of immovable property equivalent to capital raised through NCD issue.

Minors without guardian name, foreign nationals or NRIs are not eligible to invest in shriram transport ncd issue.

Brief details of STFC- NCD issue July-2013:

  1. Issue size: Rs.375 crore with option of over-subscription of Rs.375/- crore.
  2. Credit Rating: “AA+” from CARE & “AA” from ICRA. Credit rating indicates high safety and good credit quality of company.
  3. Issue price: Rs.1000- per NCD.
  4. NCD Tenure: 36 months  / 60 months.
  5. Interest payment frequency: Annually / cumulative/monthly.
  6. Min application amount: Rs.10,000/- or 10 ncds.

Interest rates :

Series I II III IV V
Tenure 36 months 60 months 60 months 36 months 60 months
Interest payput frequency Annual Annual Monthly Cumulative Cumulative
Coupon Rates for individuals considering additional incentive rate 10.90% 11.15% 10.63%

Maturity amount=1364.33

Comes around to be 10.90% compounded annual

Part payment Rs.763.37 at the end of 48 months and Rs.798.17 at the end of 60 months per NCD.

Individual investors (applying for up to Rs.5 lakh) and HNIs (investing above Rs. 5 lakh) both are eligible for additional incentive rate as indicated above.

Investor Categories & % NCDs to be alloted: 

Category I II III IV
Investor type Institutional investors Non-institutional investors HNIs / HUFs applying for  above Rs. 5 lakh Individual / HUFs applying up to Rs. 5 lakh
% NCD allocation 10% 10& 30% 50%

 

Mode of holding : Physical or demat mode as opted by investor except series III (monthly interest option)which will be offered in demat mode only.

Coupon rate for non-individuals are 9.65%,9.80% and 9.40 for series I,II,III respectively.

Company have received approvals from stok exchanges BSE & NSE where it has listed.

As far past history of Shriram NCDs are concerned,their issues have over subscribed within few days of opening and investor as well as distributors who are looking to invest in this issue need to keep watch of this issue.

 


Category: Fixed Income

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