Shriram City Union Finance will be raising its maiden non-convertible debentures (NCDs) of Rs 750 crore to meet its lending activities.
Ms Subhasri Sriram, Executive Director, Shriram City Union, told Business Line the company wanted to diversify into a new channel to raise long-term money to fund its business needs. The funds will be used in extending credit to small and medium enterprises.
The non-banking finance company (NBFC) is yet to decide on the interest rate of the NCDs. It is expected the company would fix the interest rate by early July. The tenure of the debentures would extend from three to seven years but it is yet to finalise on it. Once the above factors are fixed, the company would get the debentures rated by any of the rating agency such as Fitch, Crisil or ICRA, she said.
Currently Shriram City Union Finance has about Rs 6,000 crore of debt, comprising public deposits, private debentures, public bonds and bank loans. The share price of Shriram City Union Finance closed at Rs 519 up by 2.95 per cent on the Bombay Stock Exchange.