Shriram Transport to raise up to Rs 1,000 crore via NCDs

Shriram Transport Finance on Thursday said it would raise up to Rs 1,000 crore via public issue of secured redeemable non-convertible debentures (NCDs). The coupon rates for the NCDs range between 8.52% and 9.1% per annum. The tranche-II issue would have a base size of Rs 200 crore with an option to retain oversubscription of up to Rs 1,000 crore. It would open on January 2 and is scheduled to close on January 22, with an option of early closure or extension, the non-banking finance company said in a release.

“The funds raised through the tranche-II issue will be used for onward lending, financing and for repayment/prepayment of interest and principal of existing borrowings of the company and for general corporate purposes,” it said.

The proposed NCDs have been rated ‘CARE AA+; Stable’ by Care Ratings and ‘Crisil AA+;Stable’ by Crisil. The firm offers NCDs with tenures of three and five years, with monthly, annual and cumulative interest payment options, and seven years with monthly and annual interest payment options. The NCDs are proposed to be listed on the National Stock Exchange and the BSE.