Shriram Tansport Finance Company said it plans to raise about Rs 300 crore by issuing non-convertible debentures (NCDs).

The NCD offering will open on July 26 and end on Aug 10. The face value of each NCD will be Rs 1,000.

The company said 80 per cent of the offering is reserved for retail investors and 20 per cent will be issued to corporates. For retail investors, 50 per cent of the issue will be reserved for investors with an investment cap below Rs 5 lakhs and the rest will be allotted to investors with investment of Rs 5 lakhs and above.

The interest rates on NCDs for retail investors will be 11.15 per cent and 11.40 per cent, for a period of three years and five years, respectively.

The company has also retained the option to raise an additional Rs 300 crore to cover over-subscription. The company will use the funds raised through the issue for lending and investments, to repay debt and to meet working capital requirements.

The NCDs would be listed on the National Stock Exchange and the Bombay Stock Exchange.

(This article was published on July 19, 2012)
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