Shriram Transport Finance Company, one of the largest asset financing NBFC in the country, with a primary focus on financing pre-owned commercial vehicles is proposing a public issue of upto Rs 13.50 billion by issuing Secured Redeemable Non-Convertible Debentures (NCDs) of the face value of Rs 1,000 each.

The company is coming out with its Tranche 2 Issue of NCDs having a base size of Rs 3 billion with an option to retain additional amount up to Rs 10.50 billion from oversubscription, if any, aggregating to a Tranche 2 Issue Size of upto Rs 13.50 billion.

The Issue will open for subscription on October 15, 2018 and is scheduled to close on October 29, 2018, with an option of early closure, and/or extension, as mentioned in the Tranche 2 Prospectus.

The proposed NCDs under this Issue have been rated 'CRISIL AA+/Stable' by CRISIL and 'IND AA+: Outlook Stable' by India Ratings and Research. These ratings indicate high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.

The funds raised through this Issue will be used for onward lending, financing, and for repayment/ prepayment of interest and principal of existing borrowings of the Company and for general corporate purposes.

Options of investment tenors are 3, 5 and 10 years, with monthly, annual & cumulative payment options.

These NCDs, bearing a fixed rate of interest, are being offered under seven different series:

Series I and II are monthly interest payment options, having tenure of 5 years and 10 years respectively, and the Coupon shall be 9.12% p.a. and 9.30% p.a. respectively.

Series III, Series IV and Series V, interest payable annually, have tenure of 3 years, 5 years and 10 years, respectively, and the coupon shall be 9.40% p.a., 9.50% p.a. and 9.70% p.a. respectively.

Series VI and VII are cumulative options, having tenure of 3 years and 5 years respectively, where face value and interest accrued are paid at the end of the tenure. Effective yield shall be 9.40% p.a. and 9.50% p.a. respectively.

Additionally, Senior Citizens (initial allottees) are entitled to additional incentive of 0.25% per annum across all series. Accordingly, the amount payable on redemption to such Senior Citizens for NCDs under Series VI and Series VII is Rs. 1,318.67 and Rs. 1,592.70 per NCD respectively.

The NCDs are proposed to be listed on BSE Limited and National Stock Exchange of India.

Shares of the company declined Rs 30.25, or 2.91%, to trade at Rs 1,010.50. The total volume of shares traded was 26,318 at the BSE (10.19 a.m., Monday).