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Non-banking finance company (NBFC) Shriram Transport Finance (STFC) on Tuesday said its ₹-300-crore bond issuance got oversubscribed 2.23 times.
The issue comprises three tenor bonds of three, five and ten years, offering a coupon in the range 9.12 per cent to 9.70 per cent was closed on October 29.
The issue received bids worth ₹661 crore as per the data available on the electronic platforms of BSE and NSE, the company said in a release without offering the pricing and tenor of the issue.
The development is interesting as Monday LIC Housing Finance had deferred its ₹1,500-crore NCD plan citing higher cost, which is prevailing at 9.5 per cent for better rates paper or even more for others.
The issue from Shriram Transport, which is primarily truck financier, was lapped by retail investors, whose portion got oversubscribed by a hefty 4.67 times.
“The retail and HNI category had 80 per cent of the issue. The NCDs will help the company to have long term funds and diversify the borrowings basket as well,” Shriram Transport Finance managing director and chief executive Umesh Revankar said.
The company would use the funds from the debt sale for onward lending and for repayment of interest and principal of its existing borrowings and for general corporate purposes.
The NCDs will be listed on the BSE and NSE.
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