Shriram City Union Finance, a deposit-accepting NBFC registered with RBI, has filed a draft prospectus with the National Stock Exchange of India and Bombay Stock Exchange for a public issue of secured non-convertible debentures (NCDs).
The NCDs will have a face value of Rs 1,000 each, aggregating 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.
After meeting issue expenses, the funds will be used for Shriram City’s various financing activities including lending and investments. The funds would also be used to repay the company’s existing loans and for its business operations including for the capital expenditure and working capital requirements. The NCDs are proposed to be listed on the NSE and the BSE.
The NCDs proposed to be issued have been rated AA by CARE rating agency for an amount of up to Rs 750 crore and CRISIL AA-/Stable by CRISIL for an amount of up to Rs 750 crore. The ratings indicate high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.
JM Financial Consultants, AK Capital and ICICI Securities are the lead managers to the issue while Karvy Investor Services is the co-lead managers to the issue.