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Shriram Transport Finance Ltd plans to borrow up to Rs 3,000 crore through non-convertible debentures (NCDs) to support its financing activities.
The company has filed a draft offer document for the public issue of 3 crore secured redeemable NCDs of face value of Rs 1,000 each, it said.
The proceeds of the issue will be used for financing activities such as lending and investments, for repaying loans and for business operations, including capital expenditure and working capital requirements.
JM Financial Institutional Securities, A K Capital Services, Edelweiss Financial Services and ICICI Securities are the lead managers of the issue.
NCDs are bonds issued by a company that cannot be converted into stock and usually offer a higher interest rate than convertible debentures.
Shriram Transport Finance, a part of the the Shriram group of companies, is into commercial vehicle financing, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life and general insurance and mutual funds.
