Non-banking finance company Shriram Transport Finance Company will hit the markets on Monday with its issue for non-convertible debentures (NCDs).
Shriram Transport hopes to raise R250 crore through its issue of secured redeemable NCDs with a green shoe option of R250 crore. The NCDs have a yield of 11.25% for the tenure of three years, 11.5% for the tenure of five years and 11.75% for the tenure of seven years for retail investors.
The issue has been rated AA by Crisil ratings and AA+ by CARE ratings and the quota for retail investors is 80%, said Umesh Rewankar, executive director at Shriram Transport Finance Company.
The issue will open on October 7 and is expected to close on October 21. The face value of each NCD is R1,000 and the minimum application is R10,000 or 10 NCDs.
Earlier in July, Shriram Transport had a public issue of NCDs hoping to raise R750 crore but managed to raise R475 crore, according to the BSE website.
IIFL, which launched its public issue of secured redeemable non-covertible debentures earlier this month, managed to raise R1,154 crore. The issue saw strong demand from retail investors, with the quota for the retail buyers and QIBs (qualified institutional buyer) fully subscribed.
Shriram Transport Finance Company's primary focus is on financing pre-owned commercial vehicles.