Category Archives: Debentures

Shriram Transport Finance Company NCD – Good to Invest

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.
NCD Rating
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
Issue Date
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.
Pay-in date
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 Available

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
1 ANNUAL Rs.  1000/- 9.00% 9.50% 9.00% 9.50% Rs.10000/- Rs.1000/-
2 SEMI-ANNUAL Rs.  1000/- 9.50% 10.00% 9.73% 9.96% Rs.10000/- Rs.1000/-
3 ANNUAL Rs.  1000/- 9.75% 10.25% 9.75% 9.75% Rs.10000/- Rs.1000/-
4 DOUBLE BOND Rs.  1000/- N.A N.A N.A N.A Rs.10000/- Rs.1000/-
5 ANNUAL Rs.  1000/- 10.25% 10.75% 10.25% 10.75% Rs.10000/- Rs.10000/-

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.

L&T Finance Non Convertible Debentures – to raise 500 Crore

Larsen & Toubro Limited has informed the market that the financial services arm of LNT – L&T Finance Ltd has made plans to raise up to Rs 500 crore this month through NCDs, or debt instruments that cannot be converted into equities.The maturity period is almost 3 years or 36 months. TO start with it will first raise 250 crore as 25 lakh secured non-convertible debentures with a maturity period of three years at Rs 1,000 each, totaling 250 crore and if the same is oversubscribed it will raise the additional rs 250 crore.The non-convertible debentures (NCDs) will carry an interest rate of 8.40% per annum while the annualised yield will work out to 8.58%. The issue opens today and will be closed on February 22.