STFC NCD offer Tranche I – Apply moderately

Published on Friday, June 27, 2014 by Dilip Davda | Modified on Wednesday, July 22, 2015

Shriram Transport Finance Corp Ltd (STFC), the flagship company of Shriram Group from South is engaged in the finance related business as NBFC. It has obtained shelf limit of Rs. 3000 crore for debt issue of Secured Redeemable Non-Convertible Debentures of Rs. 1000 each with a base size of Rs. 100 crore from SEBI. This is the seventh debt issue offer from this company in last three years.

The company is coming out with an issue of Rs. 500 crore under this offer as Tranche I with 5000000 Secured Redeemable NCDs of Rs. 1000 each having coupon rates ranging from 9.85% to 10.15% under annual payment scheme for 36, 60 and 84 months and coupon rate of 10.71% and 10.94% for monthly payment on allotment under demat only for a tenure of 60 and 84 months respectively. The scheme of cumulative payment option is also available. Senior citizens are offer 0.25% extra for monthly as well as for cumulative scheme. These bonds offer is giving annualized yield of 9.85% to 11.50% based on category. Individual investors are given special incentive of 1.15%, 1.25% and 1.35% for the above three tenures respectively. Minimum application is to be made for 10 NCDs i.e. Rs. 10000 and in multiple of 1 NCD thereon thereafter. Issue is available for allotment under physical as well as demat mode, however, trading will take place only under demat mode. NCDs will be listed on NSE and BSE post allotments. Issue opens for subscription on 02.07.14 and will close on or before 22.07.14.

This issue has been rated CRISIL AA/Stable, CARE AA+ and IND AA+ indicating high degree of safety regarding timely servicing of financial obligations and carry very low credit risk. Issue is lead managed by JM Financial Institutional Securities Ltd, AK Capital Services Ltd, Edelweiss Financial Services Ltd; ICICI Securities Ltd. Integrated Enterprises (India) Ltd is the registrar to the issue and IDBI Trusteeship Services Ltd is the Debenture Trustee.

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About Author

DISCLAIMER: No financial information whatsoever published anywhere here should be construed as an offer to buy or sell securities, or as advice to do so in any way whatsoever. All matter published here is purely for educational and information purposes only and under no circumstances should be used for making investment decisions. Readers must consult a qualified financial advisor prior to making any actual investment decisions, based on information published here. Any reader taking decisions based on any information published here does so entirely at own risk. Investors should bear in mind that any investment in stock markets are subject to unpredictable market related risks. Above information is based on RHP and other documents available as of date coupled with market perception. Author has no plans to invest in this offer.

(SEBI registered Research Analyst-Mumbai).

About Dilip Davda

Dilip Davda, a freelance journalist

Dilip Davda is veteran journalist associated with stock market since 1978. He is contributing to print and electronic media on stock markets/insurance/finance since 1985.

Dilip Davda is a leading reviewer of public issues and NCDs in the primary stock market in India. The knowledge he gained over 3 decades while working in the stock market and a strong relationship with popular lead managers makes his reviews unique. His detail fundamental and financial analysis of companies coming up with IPO helps investors in the primary stock market. Dilip Davda has a special interest in analyzing the SME companies and writing reviews about their public issues. His reviews are regularly published online and in news papers.

Email: dilip_davda@rediffmail.com


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