Shriram Transport NCD: (9.70%) STFC NCD Details & Review July 2019

Shriram Transport Finance NCD July 2019 Public Issue: Details, Features, Credit Rating, Reasons to Invest, Price, Date, Allotment, Listing, Reviews, Status & How to Apply?

Greetings Investors šŸ™‚

Our today’s post is contributed to Shriram Transport Finance Company Ltd NCD. Yes, the company is all set to proposeĀ  NCD @ 9.70%.

In the year 2019, there is a huge flood of non-convertible debentures. Compared to the fixed deposit, these NCD proffers high-interest rates.

Shriram Transport Finance company is a part of the Shri ram group of companies which has a powerful presence in the financial services in India inclusive of commercial vehiclesĀ consumer finance, life and general insurance, stockbroking, chit funds and distribution of financial products, such as life and general insurance products and mutual fund products.

The company came into existence in the year 1979. It has a long pathway record of over three decades in commercial vehicle financing industry in India.

In addition, it proffers commercial vehicle financeĀ industry in India for FTBs and SRTOs

Interested investors are intrigued to know the Shriram transport finance limited NCD

Stay Tuned to learn in-depth about theĀ Shriram Transport Finance Company NCD

AboutĀ Shriram Transport Finance

Shriram Transport Company is a chief asset financing company. The company services to the first time buyer and small road transport operators in the organized sector in India.

The company has a worldwide network of branches across India. It has 1213 branches including in most of the commercial hubs

It is also forging the robust existence in 862 rural areas with an aim to enhance the market sharesĀ in the pre-owned commercial vehicle market.

The company is strategically amplifying its market segments and operation by signing a revenue-earning agreement

Shriram Transport Finance NCD July 2019 Detail

STFC NCD

Shriram Transport Finance Company Limited NCD – Issue Details:

Issuer Shriram Transport Finance Company LimitedĀ (View Report)
Issue Type Secured Redeemable Non-Convertible Debentures
Issue Period Issue Opens: Wednesday, Jul 17, 2019
Issue Closes: Friday, Aug 16, 2019
Coupon Rate 9.70% p.aĀ *
Issue Size Base Issue of Rs. 300 Crores with an option to retain oversubscription aggregating up to Rs. 10,000 Crores (ā€œTranche I Issue Limitā€) (ā€œTranche I Issueā€), which is the Shelf Limit
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 ā€˜CARE AA+; Stableā€™ by CARE, ā€˜CRISIL AA+/Stableā€™ by CRISILĀ andĀ ā€˜IND AA+: Outlook Stableā€™ by India Ratings
Mode of Allotment & Trading In Dematerialised Form
QIB 10% of the issue size
Corporate 10% of an issue size
HNI 40% of an issue size
Retail Individual 40% of an issue size
Listing NSE and BSE
Depositories NSDL & CDSL
Registrar Integrated Registry Management Services Private Limited
Book Running Lead Managers JM Financial Limited, A. K. Capital Services Limited and SMC Capitals Limited

Interest Rate of Shriram Transport Finance NCD 2019

Interest rates for series 1 to 10

Series 1 Series 2 Series 3 Series 4 Series 5 Series 6 Series 7 Series 8 Series 9 Series 10
Frequency of Interest Payment Monthly Monthly Monthly Annually Annually Annually Annually Cumulative Cumulative Cumulative
Tenor 42 months 60 months 84 months 30 months 42 months 60 months 84 months 42 months 60 months 84 months
Coupon Rate 9.12% 9.22% 9.31% 9.30% 9.50% 9.60% 9.70% NA NA NA
Amount on Maturity Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 Rs 1,000 1,374.75 1,582.25 1,912.80

What is the Issue break up?

NCD Allocation Ratio

NCD’s allocated in each investor category:

NCD’s Offered

NCD’s offered in each investor category:

Category NCD’s Reserved
Category 1 (QIB) 300,000
Category 2 (NII) 300,000
Category 3 (HNI) 1,200,000
Category 4 (RII) 1,200,000
Total NCD’s 3,000,000

How is the company doing in terms of financials?

It is very important for the investors to look upon the financials of the company. The Financial statement of the company says a lot about the company.

The meaningful analysis and interpretation, balance sheet, income statement is the groundwork for the investor choice.

Gross NPAs as a percentage of Total Loan Assets as per IGAAP were 6.19 %, 8.17% and 9.16% as of March 31, 2016, March 31, 2017 and March 31, 2018, respectively on a standalone basis, while its Net NPAs as a percentage of Net Loan Assets were 1.91%, 2.66 % and 2.83% as of March 31, 2016, March 31, 2017, and March 31, 2018, respectively on a standalone basis.

Indeed the company has robust financial and operating performance contemplated in strong growth, asset quality and returns.

Shriram Transport NCD Rating Detail

The NCD proposed to issue under this issue have been ratedĀ ‘CARE AA+; Stable’ by CARE Ratings Limited (“CARE”) for an amount of up to Rs. 10,00,000 lacs vide its letter dated JuneĀ CRISIL AA+/Stable’ by CRISIL Limited (“CRISIL”) for an amount of up to Rs. 10,00,000 lacs vide its letter dated June 26, 2019, and ‘IND AA+; Outlook Stable’ by India Ratings andĀ Research Private Limited (“India Ratings”) for an amount of up to Rs. 10,00,000 lacs vide its letter dated June 25, 2019.

The rating of the NCDs by CARE, CRISIL and India Ratings indicate that instruments with this rating are contemplated to have a great degree of safety in terms of timely servicing of financial obligations and have very low credit risk.

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Why Invest inĀ Shriram Transport Finance Company?

Holla Investors

Below, I have envisaged why the investor should consider investing in Shri Transport Company

so, let’s take a read

  • One of the finest and largestĀ NBFCs in India
  • The company enjoy the robust financial rapport
  • The performance of the Shriram transport finance company is reflected in the growth, asset quality and return
  • Proficient in credit appraisal and collection processes
  • Strong brand name and pathway of strong financial performance

How to apply Shriram TransportĀ Finance NCD

Interested Investor can proceed to buy Shriram Transport Finance Company Ltd you are required to submit the application to your bank/broker

The bank needs to be SCSB (Self-certified syndicate bank).

One can also submit the form via online.

If you have a demat account,Ā go to IPO/NFO/NCD section and apply for the same.

The procedure of applying NCD would be through ASBA (Your amount would be blocked at first and upon allotment, your amount would be deducted and NCD allotment would be done, else your amount would be unblocked) You can approach out to any of the lead managers websites to know more details on how to apply them.

Company Promoters

The Promoter of the company is Shriram Capital Limited.

What are the Objects of the Issue:

  • General corporate lending purpose
  • The prime object of the issue could be onward lending, financing and for repayment/prepayment of interest and the principal of existing borrowings of the company

Key Strengths

  • One of the well known and renowned asset financing NBFC
  • Long term industry
  • Qualified Senior management team of professionals
  • Specific Bussiness Model with a powerful brand image and the pathway of strong financial performance
  • Immense experience and expertise

Company Contact Information
Shriram Transport Finance Company Ltd
Mookambika Complex, 3rd Floor,
No. 4, Lady Desika Road,
Mylapore, Chennai, Tamil Nadu- 600004Phone: +91 44 2499 0356
Email: stfcncd8comp@stfc.in
Website:Ā http://www.stfc.in

Shriram Transport Finance NCD July 2019 Registrar

Integrated Registry Management Services Private Limited
2 nd Floor,
Ramakrishna Street, North Usman Road,
T. Nagar, Chennai – 600 017

Phone: + 91 44 2814 0801 to 803
Email: stfcipo@integratedindia.in
Website:Ā http://www.integratedindia.in/

Final Words

Dear Investors

Always remember that

ā€œPrice is what you pay. Value is what you get.ā€

Shriram Finance Limited is one of the largest financingsĀ asset financing non-banking finance companies in the organized sector in India that serve to first-time buyers (ā€œFTBā€) and small road transport operators (ā€œSRTOsā€) for financing preowned commercial
vehicles.

I hope you have found this post about Shriram NCD Issue Details 2019 Details significant.

We at Investor’s academy aims at empowering financial awareness among our readers and viewers so that they can make better investment decisions.

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1 COMMENT

  1. COUPON RATE FOR JULY 2019 NCD ISSUE NOT CLEARLY LEGIBLE / IT IS SHADOWED BY SOME
    OTHER WRITE UP. INCENTIVE FOR SENIOR CITIZENS ALSO NOT SEEN

    PLEASE MAIL COUPON RATE FOR VARIOUS PRIODS /

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