Shriram Transport to raise Rs 2,000 crore through NCD issue

Shriram Transport Finance Company Ltd, part of Rs 60,000 crore Shriram Group, plans to raise Rs 2,000 crore through NCD issue.

The first tranche of the NCD, about Rs 375 crore, will be opened during the third week of July. The money will be used to expand the business, to repay the loan and for other purposes.

Addressing company's shareholders today at the company's Annual General Meeting at Chennai, Arun Duggal, chairman, Shriram Transport said that the public issues of the NCD will be through one or more tranches during the current fiscal. The total money which the company plans to raise is Rs 2,000 crore, he added.

He said that the funds will be used for financing, repayment of loan and for other business operations.

The company, which is one of the largest asset financier increased its Assets Under Management to Rs 49,676 crore as on March 31, 2013 from Rs 40,213 crore, a year ago.

Despite tough conditions and challenging environment the performance was "satisfactory" said Duggal.

On the outlook, he said that it is difficult to predict. The focus will be on penetration in rural pockets where the prospects are bright and semi-urban markets, he added.

"We can sail through the macro-economic challenge," said Duggal.