Shriram Transport Finance Company Limited News

Shriram Transport Finance Company Limited to raise Rs. 75,000 lacs through Secured Non Convertible Debentures.

Shriram Transport Finance Company Limited (STFC), the largest asset financing NBFC in India plans to enter the debt capital market on July 16, 2013 with a public issue of Secured Non Convertible Debentures (NCDs) of face value of Rs. 1,000 each.

From Left to Right : Photocaption

1.       Mr.Sanjiv Ferreira, ICICI Securities

2.       Mr.P.Sridharan, COO, STFC

3.       Mr. U.G.Revankar, MD, STFC

4.       Mr.Sellamani, Regional Business Head, STFC

Shriram Transport Finance Company Limited

to raise Rs. 75,000 lacs through

Secured Non Convertible Debentures

Chennai, July 12, 2013: Shriram Transport Finance Company Limited (STFC), the largest asset financing NBFC in India (Source: The D&B Research Report and the CRISIL Report, in terms of their research based on various financial and nonfinancial parameters.), plans to enter the debt capital market on July 16, 2013 with a public issue of Secured Non Convertible Debentures (NCDs) of face value of Rs. 1,000 each. The NCD issue aggregating upto Rs.37,500 lacs with an option to retain over-subscription up to Rs.37,500 lacs for issuance of additional NCDs aggregating to a total of up to Rs.75,000 lacs.

The NCDs proposed to be issued under this Issue have been rated ‘CRISIL AA/Stable’ by CRISIL and 'CARE AA+' by CARE. The rating of the NCDs by CRISIL indicates high degree of safety with regard to timely servicing of financial obligations and carrying very low credit risk, while the rating of NCDs by CARE indicates high safety as regards timely servicing of financial obligations and carrying very low credit risk. The NCDs offered are proposed to be listed on the National Stock Exchange of India Limited (“NSE”) and BSE Limited (“BSE”).

The Issue shall be open from July 16, 2013 to July 29, 2013 with an option to close earlier and/or extend up to a period at the discretion of the duly authorised committee of Directors of the Company subject to necessary approvals. The funds raised through this Issue will be used for various financing activities including lending and investments, to repay existing loans and for business operations including capital expenditure and working capital requirements.

JM Financial Institutional Securities Private Limited, A.K. Capital Services Ltd., HDFC Bank Ltd. and ICICI Securities Limited are the Lead Managers to the Issue, while Karvy Investor Services Ltd, RR Investors Capital Services Private Limited, SMC Capitals Ltd and Trust Investment Advisors Private Ltd are the Co-Lead Managers to the Issue. IDBI Trusteeship Services Limited is the debenture trustee, while Integrated Enterprises (India) Limited is the registrar to the issue.

Shriram Transport Finance Company Ltd is the largest asset financing NBFC in India*, with a primary focus on financing pre-owned commercial vehicles. In addition, the company also provides commercial vehicle finance for new commercial vehicles. It is amongst the leading financing institutions in the organized sector for the commercial vehicle industry in India for FTUs and SRTOs. Shriram Transport Finance Company Ltd also provides financing for passenger commercial vehicles, multi-utility vehicles, three wheelers and tractors. In addition, it provides ancillary equipment and vehicle parts finance, such as loans for tyres and engine replacements, and provides working capital facility for FTUs and SRTOs. The company also provides ancillary financial services targeted at commercial vehicle operators such as freight bill discounting and also market co-branded credit cards targeted at commercial vehicle operators in India, thereby providing comprehensive financing solutions to the road logistics industry in India.

* Source: The D&B Research Report and the CRISIL Report, in terms of their research based on various financial and nonfinancial parameters.

Shriram Transport Finance Company Ltd was established in 1979 and has a long track record of over three decades in the commercial vehicle financing industry in India. The Company has been registered as a deposit-taking NBFC with the RBI since September 4, 2000 under Section 45IA of the Reserve Bank of India Act, 1934.  It is a part of the Shriram group of companies which has a strong presence in financial services in India, including commercial vehicle financing, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life and general insurance products and mutual fund products, as well as a growing presence in other businesses such as property development, engineering projects and information technology.