Shriram Transport Finance plans to raise Rs 600 cr

The debt issue would be open for subscribtion from July 26, close on Aug 10, the company said

Non-banking finance company Shriram Transport Finance Company (STFC) today announced plans to raise Rs 600 crore through secured non-convertible debentures.

The Rs 300-crore debt issue, with a greenshoe option of equivalent amount, would open for subscription from July 26 and close on August 10, Shriram Transport Finance Managing Director Umesh Revankar told reporters here.

Shriram Transport Finance is into commercial vehicle financing, consumer finance, truck financing and has a wide presence across the country.

The funds raise through the issue would be used for financing activities, including lending and investments, repaying existing loans and for business operations, he added.

The NCD are rated 'CRISIL AA/Stable' by CRISIL for an amount of upto Rs 600 crore and 'CARE AA+' by CARE for an amount of Rs 600 crores, he said.

The issue offers return of up to 11.40% for a five-year duration and 10.50% for a three year tenure for retail customers.

Priced at Rs 1,000 per unit, the minimum subscription is 10 units or Rs 10,000.

JM Financial, AK Capital, ICICI Securities and Kotak Mahindra Capital Company are the lead managers to the issue.