Shriram City seeks Sebi nod to raise up to Rs 200 cr via NCDs

Funds raised through the issue will be used for financing and lending activities

Shriram City Union Finance has sought market regulator Sebi's approval to raise up to Rs 200 crore through non-convertible debentures (NCDs).

"Public issue by Shriram City of secured redeemable NCDs of face value of Rs 1,000 each aggregating up to Rs 10,000 lakh with an option to retain over subscription up to Rs 10,000 lakh for issuance of additional NCDs aggregating to a total of up to Rs 20,000 lakh," the company said in a draft prospectus filed with Sebi.

NCDs are loan-linked securities issued by a company and can't be converted into stocks. They usually carry a higher interest rate than a convertible debenture.

The funds raised through the issue would be used for financing and lending activities, to repay existing loans and meet business operations including for capital expenditure and working capital requirements.

ICICI Securities is the lead managers to the proposed issue, while Shriram Insight Share Brokers is the registrar.

The NCDs offered are proposed to be listed on the National Stock Exchange (NSE) and BSE, the draft documents said.

Shriram City Union Finance, part of Shriram Group, has a comprehensive range of offerings comprising finance for vehicles, personal loans, small business loans and loan against gold.