Shriram City Union Finance company’s secured non-convertible debentures (NCD) is offering effective yield of 11.50 % per annum for maturity of five years.
Retail financing NBFC Shriram City Union Finance company’s non-convertible debentures (NCD) issue will open for subscription on April 16, 2014 and close on May 16, 2014. The company has allocated 40% NCDs to retail investors, 40% to HNIs and 20% to institutional and non-institutional investors.
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 can invest in this NCD.
Application size: The minimum application size is Rs. 10,000 for 10 NCDs as the face value per debenture is Rs. 1000. Shriram City Union aims to collect Rs. 100 crore with an option to retain an additional Rs. 100 crore if the issue gets oversubscribed.
Credit Ratings: CARE has assigned a rating of AA. Such instruments carry very low credit risk and high degree of safety regarding timely servicing of financial obligations.
Tentative brokerage structure: The brokerage ranges between 1.15% (2 and 3 years) and 1.4% (5 years) per application offered upfront.
Effective yield and maturity:
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 these NCDs.
Trustee: GDA Trusteeship Services.
Registrars: Shriram Insight Share Brokers Limited.
Depositories: NSCL and CDSL.
Listing: The NCDs will be listed on BSE. Investors can also apply in physical mode. However, for NRIs, the issue is only available in dematerialized form.
Lead managers: ICICI Securities and AK Capital Services.
Lead brokers: A.K. Stockmart, Axis Capital, Edelweiss Broking, HDFC Securities, ICICI Securities, India Infoline, Integrated Enterprises, JM Financial Services, Kotak Securities, RR Equity Brokers, SMC Global Securities, TATA Securities, Tipsons Stock Brokers, SPA Securities and Just Trade Securities.
