Shriram Transport to raise Rs 1,000 cr through NCDs

Shriram Transport Finance, the largest commercial vehicle financier in the country, plans to raise Rs 1,000 crore by issuing secured non-convertible debentures (NCDs) to meet the lending requirement and debt repayment in the current financial year. The issue, opening on June 27, would close on July 9.

"The NCD issue would aggregate up to Rs 500 crore, with an option to retain oversubscription of up to Rs 500 crore for the issuance of additional NCDs," the company said in a release.

The Chennai-based company, which plans to borrow Rs 12,000 crore in 2011-12, may also opt for another retail bond issue in the fourth quarter of the current financial year, said R Sridhar, managing director, Shriram Transport Finance. "Retail is one of the big channels for us. The majority of our funding needs is now met through banks. But we are now diversifying," he said.

The NCDs would be listed on the National Stock Exchange and has been rated by agencies like Crisil and Care. J M Financial and ICICI Securities are the lead managers for the issue, while RR Investors Capital and Karvy Investor Services are the co-lead managers.