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

MUMBAI: Non-banking finance company Shriram Transport Finance today said it will raise up to Rs 750 crore, including an over-subscription of up to Rs 375 crore, through a non-convertible debenture (NCD) issue.

Thus, Shriram Transport Finance is the first company to launch NCDs this fiscal.

The effective yield for investors will be in the range of 9.65-11.15 per cent with a maturity period of three-five years.

The issue, which is open to individual, institutional, non-institutional and high networth investors, will be opened for subscriptions on July 16. The issue will close on 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 here.

The debenture issue, which has been rated AA/stable by Crisil and AA+ by Care, will be listed on bourses.

According to the company, the minimum application size is 10 bonds of Rs 1,000 face value each.

Ravenkar also said the company might come with another NCD issue this fiscal depending on market situation.

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.