Shriram City Rs 200-cr NCD issue opens on April 16
Mumbai: Shriram City Union Finance Ltd plans to raise Rs 200 crore from a public issue of secured Redeemable Non-Convertible Debentures (NCD) of face value of Rs 1,000 each.
The fund raising is up to Rs 100 crore with an option to retain over subscription up to Rs 100 crore for issuance of additional NCDs aggregating to a total of up to Rs 200 crore.
An NCD (Non Convertible debenture) is a debt instrument with a fixed tenure that pays interest monthly, quarterly, annually or at the end of the tenure. The money invested is returned either over the tenure of the investment or at the end of the tenure. These are certificates issued by companies to raise funds through the public issue and cannot be converted into equity shares.
The issue will open on April 16, 2014. The lead managers are ICICI Securities Ltd and A K Capital Services Ltd, the company said in a statement.
G S Sundararajan, Managing Director, Shriram City, said, “We have been able to achieve relatively stable and competitive cost of funds from a range of sources despite the difficult conditions in the global and Indian economy. Shriram City’s strategy is to grow our housing finance business and continue to grow our small enterprise finance segment by capitalising on the Shriram Group brand name and ecosystem. We aspire to further expand operations by introducing our full range of products in all of our business outlets and growing our business outlet network, and soon offer our full range of products.”
An India Ratings & Research report said that Shriram City, in its 28th year of existence, is a deposit-accepting NBFC with multiple product lines. The company is the largest NBFC in India in the small loan segment, with loans between Rs. 1 lakh to Rs. 10 lakh. It is also a provider of loans against gold, financing for two wheelers, pre-owned and new vehicle loans, personal loans and housing loans (the last named product being disbursed through a subsidiary).
Shriram City’s assets under management have grown by a CAGR of 40.86 per cent to Rs 15,828.14 crore as of March 31, 2013 from Rs 7,998.05 crore as of March 31, 2011.