Shriram Transport aims 8-10% asset growth in FY15

Company hopes heavy commercial vehicle market growth in the second half of this year

Shriram Transport Finance Co Ltd, flagship company of the Shriram group today said it was aiming at 8-10% growth in asset base in the current fiscal.

"We hope heavy commercial vehicle (HCV) market growth will come in the second half of this year. We are looking at a growth of 8-10% in the asset size in 2014-15 from a flat market last year," Shriram Transport vice-president S K Mundra said here today at a roadshow for NCD launch.

The standalone asset size of the company was at Rs 53,834 crore as of March 2014.

Mundra projected a growth of 6-7% in HCV during FY 15 and double digit in the next financial year.

Shriram Transport launched a Rs 500-crore non convertible debenture issue with an option to retain subscriptions upto Rs 3,000 crore.

The company is likely to close the issue once it mops up Rs 1,500 crore in this tranche.

The rate is 25 basis points lower than the previous issue, Mundra said.

This is the first issue by a private company under the 'shelf prospectus' route wherein a company can file a single prospectus and hit the market with multiple issues.

The company will use the funds to expand its reach through more branches.

Shriram Transport president Dilip K Mulchandani said its arm Shriram Automall India Ltd will also open more outlets across the country.

"We are looking at 60-65 automalls in the next two years from 32 now," he said.