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The maiden issue of Secured Non-Convertible Debentures (NCDs) of Shriram City Union Finance, part of the Shriram Group, will open on Thursday and close on August 27.
The company expects to raise up to Rs 750 crore, including an option to retain an over-subscription of up to Rs 375 crore. “The funds raised through this issue will be used for various financing activities, including lending and investments. They will also be used to repay the company's existing loans,” Mr Y.S. Chakravarti, executive director of the company, told media persons here on Wednesday.
The average lending rate of the deposit-taking NBFC was 23 per cent last quarter, while its average monthly disbursement is about Rs 1,100 crore.
Mr Chakravarti said the objective of the issue is to widen its retail channel, with 80 per cent of the issue meant for individual investors.
Shriram Housing, a subsidiary of Shriram City, which got the licence from National Housing Board a few days ago, expects to start housing finance operations from September. “Initially, we plan to raise Rs 1,000 crore for the housing finance operations. We are yet to finalise our rates,” Mr Chakravarti said.
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