×
Home Companies Industry Politics Money Opinion LoungeMultimedia Science Education Sports TechnologyConsumerSpecialsMint on Sunday
×

STFC to raise Rs1,000 crore from sale of NCDs

STFC to raise Rs1,000 crore from sale of NCDs
PTI
Comment E-mail Print Share
First Published: Mon, Jun 20 2011. 04 03 PM IST
Updated: Mon, Jun 20 2011. 04 03 PM IST
Mumbai: The country’s largest commercial vehicle financing firm, Shriram Transport Finance Company (STFC), today said it plans to raise up to Rs1,000 crore through a sale of non-convertible debentures (NCDs) of face value of Rs1,000 each.
The issue will be open from 27 June to 9 July.
“The funds will be used for our various financing activities including lending and investments, to repay existing loans and for business operations including capital expenditure and working capital requirements,” Shriram Transport Finance Company’s managing director, R Sridhar, told reporters in Mumbai.
“We have already raised (funds) twice earlier. This is the third time we are coming to the market for raising resources,” he said.
The issue would aggregate up to Rs500 crore with an option to retain over-subscription up to Rs500 crore for issuance of additional NCDs aggregating to a total of up to Rs1,000 crore.
The money will be raised through three-year and five-year bonds. The five-year bonds will have a put and call options at the end of the fourth year.
The company will pay an interest of 11.6% to a reserved category of retail investors, 11.35% to an unreserved category of retail investors and 11.1% to other investors on the five-year bonds.
On the three-year bonds, the company will pay an 11.35% coupon to the reserved category of retail investors, 11.1% to the unreserved and 11% to other investors.
Comment E-mail Print Share
First Published: Mon, Jun 20 2011. 04 03 PM IST