Shriram Transport Finance: Raise Rs. 750 crore via NCDs..!

Share of retail is capped at 50 %, HNI is at 30 %, with 10 % each reserved for institutions & non-institutions.

Shriram Transport Finance Corp. is coming with the first public sale of bonds this quarter as hopes of lower interest rates fade amid talk of the Reserve Bank of India (RBI) reversing the interest rate cycle to prevent a currency slide.

India's largest truck financier is planning to raise Rs. 750 crore by issuing non-convertible debentures (NCDs) to retail & institutional investors.

Mr.  Umesh Revankar, MD, Shriram Transport Finance, said "We do not expect RBI to cut rate in its July (2013) policy. We have not seen transmission of rate cut so far. Only when there is a Cash reserve ratio (CRR) cut can we expect banks to lower base rate"

The issue opens on July 16, 2013 and closes on July 26, 2013 The issue base is about Rs. 375 crore, with option to retain an oversubscription of up to Rs. 750 crore.

The Shriram Transport Finance Corp is focusing mainly on retail to mop up the funds - the share of retail is capped at 50 %, HNI is at 30 %, with 10 % each reserved for institutions & non-institutions.

The interest rate for retail investors is 10.9 % for three years and 11.15 % for five years per annum. It is lower from the interest offered last year of 11.15 % to 11.40 %.

Photocaption:

Left – Right:

1.       Mr.Sanjiv Ferreira, ICICI Securities

2.       Mr.P.Sridharan, COO, STFC

3.       Mr. U.G.Revankar, MD, STFC

4.       Mr.Sellamani, Regional Business Head, STFC  

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