STFC forays into debt market

Shriram Transport Finance Company Limited (STFC), India’s largest commercial vehicle financing company has made an entry in the debt market on July 26, 2012 with a public issue of Secured Non Convertible Debentures of face value of Rs 1,000 each, (NCDs), aggregating upto Rs 300 crores with an option to retain over-subscription upto Rs 300 crores for issuance of additional NCDs aggregating to a total of upto Rs 600 crores issue. 80% of the total issue has been reserved for individual retail investors, while balance 20% for institutions.

The issue closes on 10 August 2012 with a provision to close earlier or extends the period, decided by the authorised committee of directors of the company. The NCDs offered through the prospectus dated July 16, 2012 are proposed to be listed on the NSE and the BSE would be available only in the demat form with the minimum application fee being fixed at Rs 1,000.