Shriram Transport Finance to raise up to Rs 500 cr via NCDs

Proceeds from the issue will be utilised for financing activities including lending and investments

Non-banking finance company Shriram Transport Finance is planning to raise up to Rs 500 crore through non convertible debentures (NCDs) to support financing activities.

NCDs are loan-linked bonds issued by a company that cannot be converted into stock and usually offer higher interest rate than convertible debentures.

"The company has filed a draft offer document for public issue of secured redeemable NCDs of face value of Rs 1,000 each, NCDs aggregating up to Rs 250 crore with an option to retain over-subscription up to Rs 250 crore for issuance of additional NCDs aggregating to a total of up to Rs 500 crore," it said.

The proceeds from the issue would be utilised for financing activities including lending and investments.

Besides, the fund would be used for repaying existing loans and for business operations including capital expenditure and working capital requirements.

JM Financial Institutional Securities and A K Capital Services are the lead managers of the issue, while Integrated Enterprises (India) Ltd is the registrar.

Shriram Transport Finance, a part of the the Shriram group of companies, is into commercial vehicle financing, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life and general insurance and mutual funds.