Shriram Transport Fin to raise Rs 10,000 crore via NCD issue

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Published: July 16, 2019 2:15:12 AM

Options of investment tenors are 30 months with annual interest payment option and 42, 60 and 84 months, with monthly, annual & cumulative interest payment options.

Shriram Transport, Shriram Transport Fin, markets news, NCD, non-convertible debenture, CRISIL, market, Series VIII, IX and X are cumulative options, having tenure of 42, 60 and 84 months, respectively, where face value and interest accrued are paid at the end of the tenure and will be redeemed at Rs 1,374.75, Rs 1,582.25 and Rs 1,912.80 per NCD.

Shriram Transport Finance, a vehicle financing company, on Monday proposed a public issue of up to Rs 10,000 crore secured redeemable non-convertible debentures (NCDs) of the face value of Rs 1,000 each, with a coupon rate of up to 9.70% per annum, depending on various tenures and interest payment options.
The tranche 1 issue, which has a base size of Rs 300 crore and the over-subscription limit of Rs 10,000 crore, will open for subscription on Wednesday and is scheduled to close on August 16. The NCDs are proposed to be listed on the National Stock Exchange and BSE, and NSE shall be designated stock exchange.

The proposed NCDs under the tranche 1 issue have been rated ‘CARE AA+; Stable’ by CARE Ratings Limited, ‘CRISIL AA+/Stable’ by CRISIL and ‘IND AA+: Outlook Stable’ by India Ratings and Research. These ratings indicate high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.

Options of investment tenors are 30 months with annual interest payment option and 42, 60 and 84 months, with monthly, annual & cumulative interest payment options. These NCDs, bearing a fixed rate of interest, are being offered under ten different series. Series I and II and III are monthly interest payment options, having tenure of 42, 60 and 84 months, respectively, and the monthly coupon shall be 9.12%, 9.22% and 9.31% per annum, respectively. For Series IV, V, VI and VII interest is payable annually, having tenure of 30, 42 , 60 and 84 months respectively, and the coupon shall be 9.30%, 9.50%, 9.60% and 9.70% per annum, respectively.

Series VIII, IX and X are cumulative options, having tenure of 42, 60 and 84 months, respectively, where face value and interest accrued are paid at the end of the tenure and will be redeemed at Rs 1,374.75, Rs 1,582.25 and Rs 1,912.80 per NCD.

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