Shriram Transport Finance Company, announced on Monday that it planned to raise Rs 1,000 crore by issuing secured non-convertible debentures (NCD). The issue will open on June 27 and will close on July 9. The NCD issue would aggregate up to Rs 500 crore with an option to retain oversubscription of up to Rs 500 crore for issuance of additional NCDs.
The NCDs have been rated ‘AA/Stable’ by CRISIL and 'CARE AA+' by CARE. The rating of the NCDs by CRISIL indicates high degree of safety with regard to timely payment of interest and principal on the NCDs, while the rating of NCDs by CARE indicates high safety for timely servicing of debt obligations. The NCDs will be listed on NSE.
The funds raised through the issue will be used for its financing activities such as lending and investments, to repay its existing loans and for business operations including capital expenditure and working capital requirements.
JM Financial and ICICI Securities are the lead managers to the issue and RR Investors Capital and Karvy Investor Services are the co-lead managers.