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Shriram Transport Finance Company (STFC) plans to raise up to ₹10,000 crore by issuing secured redeemable non-convertible debentures (NCDs).
The proposed funds 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 is proposing a public issue of NCDs of face value ₹1,000 each. The company is coming out with its tranche 1 issue of NCDs having a base size of ₹300 crore with an option to retain over subscription aggregating up to ₹10,000 crore which is the shelf-limit, according to a statement.
Options of investment tenors are 30 months with annual interest payment option and 42, 60 and 84 months, with monthly, annual and cumulative interest payment options.
These NCDs, bearing a fixed rate of interest, are being offered under 10 different series:
The tranche 1 issue will open for subscription on Wednesday (July 17) and is scheduled to close on August 16 with an option of early closure or extension, as may be decided by the Board or the duly constituted committee thereof.
The proposed NCDs under the tranche 1 issue have been rated ‘AA+; Stable’ by CARE, Crisil and India Ratings. The NCDs are proposed to be listed on the NSE and the BSE and the NSE shall be the designated stock exchange.
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