Shriram Transport secured non-convertible debentures (NCD) is offering effective yield of 11.50 % per annum for the maturity of seven years.
Shriram Transport Finance Company’s secured non-convertible debentures (NCD) issue will open for subscription on July 2, 2014 and closes on July 22, 2014. The company has allocated 50% NCDs to retail investors, 30% to HNIs and 10% each 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 Transport aims to collect Rs. 500 crore with an option to retain an additional Rs. 2500 crore if the issue gets oversubscribed.
Credit Ratings: CRISIL, IND and CARE have assigned ratings of AA, AA+ and AA+ respectively. 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 1.4% (3 years), 1.6% (5 years) and 1.8% (7 years) per application offered upfront.
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: IDBI Trusteeship Services.
Registrars: Integrated Enterprises.
Depositories: NSCL and CDSL.
Listing: The NCDs will be listed on both the bourses BSE and NSE. Investors can also apply in physical mode. However, for NRIs, the issue is only available in dematerialized form.
Lead managers: JM Financial, Edelweiss, ICICI Securities and AK Capital Services.
