Shriram Transport Finance Company – They are the largest asset financing NBFC with a primary focus on financing pre-owned commercial vehicles*.They are among the leading financing institutions in the organized sector for the commercial vehicle industry in India for FTUs and SRTOs. They also provide financing for passenger commercial vehicles, multi-utility vehicles, three wheelers, tractors and construction equipment. In addition, They provide ancillary equipment and vehicle parts finance, such as loans for tyres and engine replacements, and provide working capital facility for FTUs and SRTOs. They also provide ancillary financial services targeted at commercial vehicle operators such as freight bill discounting and also market co-branded credit cards targeted at commercial vehicle operators in India, thereby providing comprehensive financing solutions to the road logistics industry in India. In addition, They also provide personal loans to the existing customers.
Shriram Transport Finance Company Limited NCD
NCDs aggregating upto Rs. 25,000 lacs with an option to retain over-subscription upto Rs. 25,000 lacs for issuance of additional NCDs aggregating to a total of upto Rs.50,000 lacs, including a reservation for Unsecured NCDs aggregating upto Rs. 20,000 lacs. The Unsecured NCDs will be in the nature of subordinated debt and will be eligible for Tier II capital.*NCD will be listed on NSE.
The Secured NCDs proposed to be issued under this Issue have been rated ‘CARE AA+’ by CARE for an amount of upto Rs. 50,000 Lacs and ‘AA/Stable’ by CRISIL and the Unsecured NCDs proposed to be issued under this Issue have been rated ‘CARE AA’ by CARE for an amount of upto Rs. 50,000 Lacs and ‘AA/Stable’ by CRISIL for an amount of upto Rs. 50,000 Lacs
The Issue shall be open from May 17, 2010 to May 31, 2010 with an option to close earlier and/or extend upto a period as may be determined by our Board.
3 (three) Business Days from the date of reciept of application or the date of realisation of the cheques/demand drafts, whichever is later.Deemed Date of Allotment Deemed date of allotment shall be the date of issue of the Allotment Advice / regret.
|Options||Frequency of||Face Value &||Coupon(%) p.a.||Effective Yield (%) p.a.||Minimum Application Size||In Multiples Of|
|Interest Paymnet||Issue Price||QIB/NII||>5lacs||QIB/NII||>5lacs|
|4||DOUBLE BOND||Rs. 1000/-||N.A||N.A||N.A||N.A||Rs.10000/-||Rs.1000/-|
Final Conclusion :
Shriram Transport corporation is considered one of the best NBFc in india and they are in this field for almost 3 decades now so no worry about the business they are doing , Its trying to raise 80 percent of the money for the NCD from Retail.Scheme wise it has 3 secured and 2 unsecured , the secured NCD is rated as CARE AA+ and Un Secured are rated as CARE AA.If we go by the rating company the retailers need not worry much as the un secured itself is not having much risk.The interest yield is on the higher side where a bank offers only 7.5 or so max but they offer anywhere from 9.5 to 10.5 on the secured side itself.On the Un Secured side the yield is really high anywhere from 10.75 percent to 11.25 percent.If there is a urgent need of liquidity arise we can sell this NCD in NSE which is very good option for the retailers.So this NCD offers both very good Return and also rated good by Care and has very good liquidity option for the retailers.