Shriram City's Rs 200-crore NCD issue to open on April 16

Shriram City Union Finance's Rs 200-crore non-convertible debenture (NCD) issue will open for subscription on April 16.

 

The company is aiming to garner Rs 100 crore through NCDs with an option to retain over subscription to the extent of another Rs 100 crore, aggregating to a total of Rs 200 crore.

 

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

 

The issue would open on April 16 and close on May 16, as per the draft prospectus filed with market watchdog Securities and Exchange Board of India (Sebi).

 

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

 

"Public issue by Shriram City of secured redeemable NCDs of face value of Rs 1,000 each, aggregating up to Rs 100 crore, with an option to retain over subscription up to Rs 100 crore for issuance of additional NCDs aggregating to a total of up to Rs 200 crore," the company said.

 

ICICI Securities and A K Capital Services are the lead managers to the proposed issue. The NCDs are proposed to be listed on Bombay Stock Exchange (BSE).

 

Earlier in December, the company had garnered around Rs 154 crore against the base size of Rs 100 crore.

 

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

 

As of 2:21 p.m., shares in Shriram City Union Finance were trading at Rs 1053.75 apiece on the BSE, down 0.30 per cent from the previous close.