Shriram City seeks Sebi nod to raise up to Rs 200 crore via NCDs

Shriram City Union Finance has sought approval from market watchdog Securities and Exchange Board of India (Sebi) to raise up to Rs 200 crore through non-convertible debentures (NCDs).

"Public issue by Shriram City of secured redeemable NCDs of face value of Rs 1,000 each aggregating up to Rs 10,000 lakh with an option to retain over subscription up to Rs 10,000 lakh for issuance of additional NCDs aggregating to a total of up to Rs 20,000 lakh," the company said in a draft prospectus filed with market regulator Sebi.

NCDs are loan-linked securities issued by a company and can't be converted into stocks. They usually carry a higher interest rate than a convertible debenture.

The funds raised through the issue would be used for financing and lending activities, to repay existing loans and meet business operations including for capital expenditure and working capital requirements.

ICICI Securities is the lead manager of the proposed issue, while Shriram Insight Share Brokers is the registrar.

According to the draft documents, the NCDs offered are proposed to be listed on the two leading bourses - National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Shriram City Union Finance, part of the Shriram Group, has a comprehensive range of offerings comprising finance for vehicles, personal loans, small business loans and loan against gold.