Shriram Transport Fin to raise Rs 1k cr via NCDs

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Mumbai: Shriram Transport Finance Company (STFC), a part of the Chennai-based Shriram conglomerate, is planning to raise Rs 1,000 crore through secured non-convertible debentures (NCD) for expansion of business acitivities.

The company has filed a draft prospectus with the National Stock Exchange (NSE) for its proposed public issue of NCDs, aggregating Rs 500 crore with a green shoe option of the equal amount.

The company has appointed four firms — Enam Securities, A K Capital Services, ICICI Securities and Kotak Mahindra Capital — as lead managers for the issue, while Integrated Enterprises (India) Ltd will act as registrar.

STFC intends to use the funds for capital expenditure and working capital requirements, and other financing activities.

The company is part of the Shriram conglomerate which has significant presence in financial services such as commercial vehicle financing, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products.

Apart from these, the group is also present in non-financial services businesses like property development, engineering projects and information technology. STFC has its a niche presence in financing pre-owned trucks and small truck owners (STOs). The company has also added passenger commercial vehicles, multi-utility vehicles, three-wheelers, tractors and construction equipment to its portfolio, making it a diversified, end-to-end provider of finance solutions for the domestic road logistics industry.