Shriram Transport Finance Company issue is currently open and will close on October 21, 2013.
Who can apply: Resident individuals, HUFs, partnership firms, companies and body corporates, banks, public financial institutions, national investment funds, mutual funds, venture capital, insurance companies, commercial banks, co-operative banks, public/private charitable trusts, industrial research organizations and other eligible categories.
Application size: The minimum application size is Rs 10,000 for 10 NCDs as the face value per debenture is Rs 1000. Shriram aims to collect Rs 250 crore with an option to retain an additional Rs 250 crore if the issue oversubscribes aggregating its total issue size to Rs 500 crore.
Credit Ratings: CRISIL and CARE have assigned a rating of AA (Double A) and AA+ (Double A Plus) respectively. Such instruments carry very low credit risk and high degree of safety regarding timely servicing of financial obligations.
Tentative brokerage structure: The brokerage between 1.4% (3 years), 1.6% (5 years) and 1.8% (7 years) per application offered upfront.
Effective yield and Maturity:
|
Effective Yield/ Tenure |
36 months |
60 months |
84 months |
|
For Non-Individual Investors |
10.75% |
10.75% |
10.75% |
|
For Individual Investors |
11.25% |
11.50% |
11.75% |
|
Post Tax Return for an individual falls under 30.90% tax bracket |
7.77% |
7.95% |
8.12% |
|
Post Tax Return for an individual falls under 20.60% tax bracket |
8.93% |
9.13% |
9.33% |
|
Post Tax Return for an individual falls under 10.30% tax bracket |
10.09% |
10.32% |
10.54% |
Note- the post-tax returns are calculated by a formula – rate*(1-tax rate)
Use of proceeds: The funds raised through this issue, after meeting the expenditures of and related to the issue, will be used for various financing activities including lending and investments.
Who can sell the product: Registered stock brokers with any stock exchange along with their respective sub-brokers, banks and intermediaries selected by the issuing company.
How can an IFA get registered to sell the product: An IFA has to sign the sub-broker agreement with a stock broker to be eligible to sell the bonds.
Trustee: IDBI Trusteeship Services.
Registrars: Integrated Enterprises.
Depositories: NSCL and CDSL.
Listing: The issue will be listed on both BSE and NSE. The applicants can also apply in physical mode. However, for NRIs, the issue is only available in dematerialized form.
Withdrawal of applications: In the event of withdrawal or rejection of application form or for unsuccessful application forms, the application amount will be credited to the relevant account within 12 working days.
Lead Managers: JM Financial Institutional Securities and A.K. Capital Services
Lead Brokers: A.K. Stockmart, Axis Capital, JM Financial Services, Just Trade Securities ( Formerly Bajaj Capital Investor Services), Edelweiss Broking, HDFC Securities, India Infoline, Integrated Enterprises (India), Karvy Stock Broking, Kotak Securities, R.R Equity Brokers, SMC Global Securities and SHCIL Services.
Shriram has allocated 50% of NCDs for retail investors, 30% for HNIs and 10% each for institutional and non-institutional investors.
