Commercial vehicle financier Shriram Transport Finance Corp (STFC) plans to tap the debt market to raise up to Rs 500 crore through a public issue of non-convertible debentures (NCDs).
The issue will open on May 17 and run till May 31. It includes a reservation of Rs 200 crore for unsecured NCDs.
There are three investment options for secured debentures and two for unsecured NCDs. The range of the instruments is 60-80 months. There is a also a zero-coupon instrument with an annual yield of 11.25 per cent.
The funds raised through the issue would be used for financing activities, including lending and investments, business operations, including capital expenditure and working capital repayments, and to repay loans, the company said in a statement.
The issue is being managed by JM Financial and ICICI Securities, with R R Investors Capital Services as co-lead manager.
The secured portion of the issue has been rated AA/Stable by Crisil and CARE AA+ by CARE. The unsecured portion has been rated AA/Stable by Crisil and CARE/AA by CARE.
STFC Managing Director R Shridhar said the offering was targeted at retail investors and 80 per cent of the issue had been reserved for them.
