Shriram City Union Finance plans NCD to raise Rs 200 crore

Company proposed to raise Rs 100 crore, with an option to retain oversubscription to extent of another Rs 100 crore

The Rs 60,000 crore Shriram Group's retail-financing NBFC Shriram City Union Finance Ltd is planning to come out with a public issue of Non-convertible Debentures (NCDs) on November 25.

The company said that it is proposed to raise Rs 100 crore, with an option to retain oversubscription to the extent of another Rs 100 crore.

Options of investment tenors are three, four and five years, with coupons of 11% per annum, 11.25% per annum. And 11.50% per annum respectively for individual investors.

Interest payment options comprise both Annual and Cumulative, with the latter providing effective yields of 12.27% per annum, 13.30% per annum and 14.46% per annum over three, four and five years respectively, said the company. A five-year structured NCD carrying a coupon of 11.50% par with an annual interest payout.

Of the Issue size, 80% of the issue is reserved for individuals - 40% being earmarked for retail investors (those investing in less than Rs 5 Lakh) and 40% for High Networth Individuals (HNIs), said the company. The NCDs are proposed to be listed on BSE and NSE, and hence may be traded.