Shriram City Union Finance (Shriram City) NCD Aug 2019 Public Issue: Shriram City NCD Details, SCUF NCD Features, Credit Rating, Reasons to Invest, Price, Date, Allotment Status, Listing, Reviews, Status & How to Apply?
Non-convertible debentures (NCD) are those which cannot be converted into shares or stocks of the company.
Investors who park their money in NCDs enjoy fixed interest rate up to maturity and after that return of the principal just like a fixed deposit.
Shriram City Union Finance Limited (SCUF) is part of the Shriram group of companies (the “Shriram Group”), a prominent financial services conglomerate in India.
SCUF is a deposit-taking NBFC with multiple product offerings, including small enterprise/ MSME financing, loans against gold, financing for two-wheelers, auto loans, personal loans, and housing finance loans.
SCUF specializes in small enterprise finance, which accounted for 57.72 % and 52.87% of its AUM as on March 31, 2019, and March 31, 2018, respectively, as per the Reformatted Consolidated Financial Information under Ind AS.
The company is all set to propose NCD on Aug 21, 2019. The company is issuing secured and unsecured non-convertible debentures.
The issue will be closed on Sep 19, 2019.
Stay tuned till the end to earn the latest update on “Shriram City NCD August 2019”.
About Shriram City Union Finance LTD
Shriram City Union Finance (Shriram City) was established in 1986 and is part of the three-decade-old Shriram Group. As a deposit-accepting non-banking financial company (NBFC), Shriram City is today India’s premier financial services company specializing in retail finance.
The Consumer Finance business of the group had its origins from the needs of the Chit Funds customers and was started in the year 2002 as a separate business unit, Shriram City Union Finance Ltd.
Shriram City has a comprehensive range of offerings comprising finance for Two Wheelers and Three Wheelers, Four Wheeler Finance (both new and pre-owned passenger and commercial vehicles), Personal Loans, Small Business Loans, and Loan against Gold. This has made Shriram City a dominant player in the field and the only NBFC to offer such a wide range of products under one roof.
Shriram City Union Finance Limited NCD – Issue Details:
|Issuer||Shriram City Union Finance Limited (View Report)|
|Issue Type||Secured, Redeemable Non-Convertible Debentures|
|Issue Period||Issue Opens: Wednesday, Aug 21, 2019|
|Issue Closes: Thursday, Sep 19, 2019|
|Coupon Rate||9.85% p.a *|
|Issue Size||Base Issue of Rs. 100 crores with an option to retain oversubscription up to Rs. 900 crores aggregating up to 1,00,00,000 NCDs amounting to Rs. 1,000 crores (“Tranche II Issue Limit”) (“Tranche II Issue”) which is within the shelf limit of Rs. 3,000 crores|
|Face Value||Rs. 1,000 per NCD|
|Minimum Application Size||10 NCDs (Rs. 10,000) and in the multiple of One NCD thereafter|
|Credit Rating||‘CARE AA+ Stable’ by CARE and ‘CRISIL AA/Stable’ by CRISIL|
|Mode of Allotment & Trading||In Dematerialised Form|
|QIB||10% of issue size|
|Non Institutional||10% of issue size|
|HNI||40% of issue size|
|Retail Individual||40% of issue size|
|Depositories||NSDL & CDSL|
|Registrar||Integrated Registry Management Services Private Limited|
|Book Running Lead Managers||A. K. Capital Services Limited, Edelweiss Financial Services Limited|
Interest rates of Shriram City NCD August 2019
|Frequency of Interest Payment||Annually||Cumulative||Annually||Monthly||Cumulative||Annually||Monthly||Cumulative|
|Tenor||24 months||24 months||36 months||36 months||36 months||60 months||60 months||60 months|
|Coupon (per annum)||9.55%||NA||9.65%||9.26%||NA||9.75%||9.35%||NA|
|Effective Yield (per annum)||9.55%||9.55%||9.64%||9.65%||9.65%||9.74%||9.75%||9.75%|
|Amount on Maturity||Rs 1,000||Rs 1,200.15||Rs 1,000||Rs 1,000||Rs 1,318.70||Rs 1,000||Rs 1,000||Rs 1,593.15|
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» Significant position in the high-growth small enterprise finance segment
» Established brand name and association with the Shriram Group
» Diversified portfolio of products
» Hub-and-spoke’ business model with efficient credit policies and procedures resulting in high asset quality
» Advanced processes and technology systems
» Experienced senior management team
Key Business Strategies:
» Continue to grow its small enterprise finance segment
» Continue to focus on controlling operating costs and operational efficiency
» Further expand operations by growing its business outlet network
» Improve its credit ratings to decrease the cost of funds
» Sustain the growth in its housing finance business.
How is the company financial performance?
SCUF’s total revenue increased to Rs. 6,069.86 crores for Fiscal 2019 from Rs. 5,438.97 crores for Fiscal 2018, at a CAGR of 11.60%, as per the Reformatted Consolidated Financial Information under Ind AS.
SCUF’s net profit after tax increased to Rs. 1,005.53 crores for Fiscal 2019 from Rs. 749.30 crores for Fiscal 2018, at a CAGR of 34.20, as per the Reformatted Consolidated Financial Information under Ind AS.
- Its revenues are at Rs 5,156 Crores in FY2018 and Rs 5,778 Crores in FY2019.
- Its profits are at Rs 710 Crores in FY2018 and Rs 988.8 Crores in FY2019.
- Net NPA is at 4.97% for FY2018 and to 5.02% in FY2019.
Why invest in Shriram City NCD 2019?
- It is a dominant player in the field and the only NBFC to offer such a wide range of products under one roof.
- Attractive interest rates where one can get a 9.86% yield.
- It is issuing secured NCDs which are safe to invest.
Why not invest in Shriram City NCD Aug 2019?
- Highest NPA
- Majorly Affected by volatility in interest rates for both their lending and treasury operations.
- Their subsidiary, Shriram Housing being an HFC, has significant exposure to the real estate sector.
- Their business requires substantial capital.
- If they are unable to manage the level of NPAs in their loan assets, their financial position and results of operations may suffer.
- Risk of High levels of customer defaults.
How to Apply Shriram City NCD Issue 2019?
You can apply these NCDs in Demat form only. If you have Demat account, you can log in to your account and go to IPO/NFO/NCD section and apply for the same. The process of applying NCD would be through ABSA (Your amount would be blocked initially and upon allotment, your amount would be deducted and NCD allotment would be done, else your amount would be unblocked)
You can reach out to any of the lead managers websites to know more details on how to apply them.
Company Contact Information
Shriram City Union Finance Ltd,
123, Angappa Naicken Street,
Chennai- 600 001, Tamil NaduPhone: + 91 44 4392 5300
Shriram City NCD Aug 2019 Lead Manager(s)
- A.K. Capital Services Limited
- Edelweiss Capital Limited
Shriram City NCD Aug 2019 Registrar
Integrated Registry Management Services Private Limited
2nd Floor, “Kences Towers” No. 1 Ramakrishna Street
North Usman Road, T Nagar
Chennai – 600 017
Tel.: +91 28140801 to 28140803
Fax: +91 28142479
Investor Grievance Email: email@example.com
Contact Person: K Balasubramanian
SEBI Registration. Number: INR000000544
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