Shriram Transport Finance Company (STFC) is expecting good response to its non convertible debentures (NCD) issue from tier II and III towns.
The Non Banking Financial Company (NBFC) with primary focus on financing pre-owned commercial vehicles is entering debt capital market with a public issue of secured NCDs of face value of Rs 1,000 each.
“Although, major cities lead in participation to capital market instruments due to higher financial literacy and demat accounts, the participation from smaller centres is slowly rising,” STFC vice president (marketing) Rajeev Garg told Business Standard here.
The company, which had taken debt capital route in the past also to mop up funds, had witnessed increasing level of retail and high net-worth individuals (HNI) participation to its successive instruments.
“We are confident that our NCD issue will get good response from smaller centres, such as Lucknow,” he added.
He said still big cities, including metros, accounted for almost 80 per cent of subscription to capital market instruments.
The company’s NCD issue would aggregate up to Rs 500 crore with option to retain over-subscription up to Rs 500 crore aggregating total of Rs 1,000 crore. The issue opens on 27 June and ends on 9 July 2011.
JM Financial Consultants Private Limited and ICICI Securities Limited are lead managers to the issue, while RR Investors Capital Services and Karvy Investor Services are colead managers.
