Shriram Transport Finance Company Ltd plans to get into insurance broking, “as it has a huge customer base to capitalise on”.
According to Umesh Revankar, Managing Director, Shriram Transport, the company applied for a licence four months ago, and it may take some time for it to get a formal approval from the Insurance Regulatory and Development Authority.
“Though the primary intention is to offer our customers a complete range of services, this will ultimately be another stream of revenue for the company too, since we have over nine lakh customers as of now,” he said. The company has already set up ‘Automalls’ across key cities to help its customers identify the right vehicle.
Revankar was in Chennai to announce the company’s proposal to raise Rs 750 crore through non-convertible debentures of Rs 1,000 face value which will give an interest rate of 9.4-9.8 per cent, depending on the tenure. The issue will be open to retail investors, institutional investors and non-institutional investors between July 16 and 29.
Initially, the company will raise Rs 375 crore and will have the option to retain an oversubscription of up to Rs 375 crore. It will be listed on the National Stock Exchange and Bombay Stock Exchange.