Shriram Transport Finance Company to raise Rs 750 crore through NCDs

Non banking financial company, Shriram Transport Finance Company (STFC) is offering up to 11.15 per cent per annum interest rates on its forthcoming secured non convertible debentures (NCDs) which is opening for purchase from July 16.

The company is planning to raise up to Rs 375 crore with an option to retain over-subscription up to Rs 375 crore for issuance of additional NCDs aggregating to a total of up to Rs 750 crore. The issue will close on July 29.

The NCDs proposed to be issued have been rated 'CRISIL AA/Stable' and 'CARE AA+' by CARE Ratings. The rating of the NCDs by CRISIL indicates high degree of safety with regard to timely servicing of financial obligations and carrying very low credit risk, while the rating of NCDs by CARE indicates high safety as regards timely servicing of financial obligations and carrying very low credit risk.

The NCDs offered are proposed to be listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). The minimum application amount for subscribing to NCDs is Rs 10,000 and in multiples of Rs 1,000 thereafter.

What's in it for retail investors?

Umesh Revankar, managing director and chief executive officer, Shriram Transport Finance Company says, "We believe retail investors stay for long with the company that is why we are offering good return to retail investors."

There are three payment options-annual, monthly and cumulative. Additionally, you can opt for either three- or five-year maturity bonds. The interest rate for individual investors is in the range of 10.90-11.15 per cent per annum. However, the interest rates will be taxed as per the individual tax rates.