STFC to raise Rs 13.5 bn through NCDs, issue to open on October 15

It is part of the company's Tranch 2 issue of NCDs, with a base size of Rs 3 bn and an option to retain up to Rs 10.5 bn from oversubscription

Shriram Transport Finance Company has proposed to raise up to Rs 13.5 billion through secured redeemable non-convertible debentures (NCDs) of the face value of Rs 1,000 each.   

The proposed issue has been rated 'CRISIL AA+/Stable' by CRISIL and 'IND AA+: Outlook Stable' by India Ratings and Research. The funds will be used for onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the company. 

The NCDs have a fixed rate of interest, with seven different series. They are of tenures of three, five and 10 years, with monthly, annual and cumulative payment options.  

The NCDs will be listed on the BSE and National Stock Exchange.  

Axis Bank, A K Capital Services, Edelweiss Financial Services, JM Financial, and Trust Investment Advisors have been appointed as lead managers to the issue. 

The issue will open for public subscription on October 15 and is scheduled to close on October 29. It is part of the company's Tranch 2 issue of NCDs, with a base size of Rs 3 billion and an option to retain up to Rs 10.5 billion from oversubscription.