The vehicle loan provider said proceeds from the NCD for its financing activities including lending and investments and also for repaying existing loans
Hyderabad: Shriram Transport Finance Co Ltd (STFC) said it entered into debt capital market with a public issue of secured non convertible debentures (NCD) of face value of Rs1,000 each, reports PTI.
It aggregates upto Rs300 crores with an option to retain over-subscription upto Rs300 crores for issuance of additonal NCDs aggregating to a total of upto Rs600 crore, company officials said on Thursday.
The issue will be open for subcription from today to 10th August with an option to close on such earlier date or extended date as may be decided at the discretion of the duly authorised committee of directors of the company subject to necessary approvals.
The NCDs under this issue have been rated 'CRISIL AA/Stable' by CRISIL for an amount of upto Rs600 crore and 'CARE AA+' by CARE for an amount of upto Rs600 crore.
The NCDs offered through the prospectus dated 16 July 2012 are proposed to be listed on the NSE and the BSE.
The funds raised through this issue, after meeting the expenditure of and related to the issue, will be used for STFC's various financing activities including lending and investments, for repaying existing loans and for business operations including capital expenditure and working capital requirements, officials said.