Shriram Transport Finance Company Ltd on Monday said it is looking to raise up to ₹10,000 crore through a public issue of secured redeemable non-convertible debentures (NCDs) of face value of ₹1,000 each.
“The company is coming out with its tranche 1 issue of NCDs having a base size of ₹300 crore with an option to retain over-subscription aggregating up to ₹10,000 crore which is the shelf limit," the non-banking financial company (NBFC) said in a statement.
Shriram Transport said tranche 1 will open for subscription on 17 July, 2019 and is scheduled to close on 16 August, 2019, with an option of early closure or extension, as may be decided by the board of directors. The proposed NCDs under tranche 1 have been rated AA+ stable by CARE Ratings Ltd, AA+/stable by CRISIL Ltd and AA+ outlook stable by India Ratings and Research Pvt Ltd.
“The funds raised through the tranche 1 will be used for onward lending, financing, and for repayment or prepayment of interest and principal of existing borrowings of the company and for general corporate purposes. 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," it said.
Shriram Transport added that JM Financial Ltd, A K Capital Services Ltd and SMC Capitals Ltd are the lead managers to the issue. Catalyst trusteeship Ltd is the debenture trustee to the issue, while Integrated Registry Management Services Pvt Ltd is the registrar to the issue.