PE-backed Shriram Transport Finance Company Ltd (STFC) has announced the launch of a secured non-convertible debenture (NCD) issue, aggregating Rs 750 crore. The issue will remain open from July 16 to July 29 with an option to close earlier and/or extend.
The funds raised would be used for various financing activities, including lending and investments, to repay existing loans and for business operations, including capital expenditure and working capital requirements, said the company.
The NCD issue worth Rs 375 crore will have an option to retain over-subscription up to Rs 375 crore, thus aggregating up to Rs 750 crore.
The NCDs proposed to be issued have been rated ‘CRISIL AA/Stable’ by CRISIL and ‘CARE AA+’ by CARE.
JM Financial Institutional Securities Pvt Ltd, AK Capital Services Ltd, HDFC Bank Ltd and ICICI Securities Ltd are the lead managers to the Issue, while Karvy Investor Services Ltd, RR Investors Capital Services Pvt Ltd, SMC Capitals Ltd and Trust Investment Advisors Pvt Ltd are the co-lead managers. IDBI Trusteeship Services Ltd is the debenture trustee while Integrated Enterprises (India) Ltd is the registrar to the issue.
The company, which is backed by Piramal Enterprises Ltd and Tiger Global Management LLC, provides financing for pre-owned and new commercial vehicles.
In February 2013, private equity major TPG Capital sold nearly half of its stake in the Chennai-based commercial vehicle financier for Rs 1,620 crore ($300 million), making returns of over 7-8x according to VCCircle estimates. (SEE: TPG Capital in multi-bagger part-exit from Shriram Transport; sells 10% stake for $300M).
(Edited by Joby Puthuparampil Johnson)