Shriram Transport Finance to raise Rs 500 cr via NCD

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The NCDs proposed to be issued under this issue have been rated AA/stable by CRISIL and AA+ by CARE. The rating of the NCDs by CRISIL indicates high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk, while the rating of NCDs by CARE indicates high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.

The NCDs offered are proposed to be listed on the National Stock Exchange and BSE.

These NCDs, bearing a fixed rate of interest, are being offered under six different Series:

The coupon rate for Series I, Series II and Series III having tenure of 36 months, 60 months and 84 months, respectively, shall be 10.75 percent p.a., payable annually. However, on any record date Individuals shall receive an additional incentive of 0.50 percent p.a. for Series I, 0.75 percent p.a. for Series II, 1 percent p.a. for Series III, aggregating upto 11.25 percent p.a., 11.50 percent p.a. and 11.75 percent p.a., respectively.

Series IV, Series V and Series VI NCDs shall be redeemable at a premium, at the end of 36 months, 60 months and 84 months, respectively, from the Deemed Date of Allotment.

The effective yield for Series IV, Series V and Series VI NCDs shall be 10.75 percent p.a. for Non-Individuals and 11.25 percent p.a., 11.50 percent p.a. and 11.75 percent p.a., respectively for Individuals.

High net-worth individuals and retail individual investors are collectively referred to as "individuals".

The issue shall be opened for subscription from October 7, 2013 to October 21, 2013 with an option to close on such earlier date or extended date up to a period as may be decided at the discretion of the duly authorised committee of Directors of the company subject to necessary approvals.

The funds raised through this issue will be used for various financing activities including lending and investments, to repay existing loans and for business operations including capital expenditure and working capital requirements.

JM Financial Institutional Securities Private Limited and A K Capital Services Limited are the lead managers to the issue. IDBI Trusteeship Services Limited is the debenture trustee, while Integrated Enterprises (India) Limited is the registrar to the issue.