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STFCL to raise Rs 300 crore via bonds

30 Nov 2011 Evaluate

Shriram Transport Finance Company (STFCL) is raising Rs 300 crore via three-year bonds with a put option in March 2012. Till March 2012, the company will pay a coupon of 10 percent and if the put option is not exercised it will pay a higher coupon of 10.20 percent. Deutsche Bank is the arranger to the deal.

Recently, the company’s subsidiary Shriram Automall was likely to invest Rs 1,000 crore for opening 50 automalls by 2013. These automalls would facilitate truckers to replace their vehicles without any delay as it would provide unique platform for the second-hand trucks market.

STFCL is the flagship company of the Chennai based Shriram Group and is classified as deposit taking asset finance NBFC, with an objective to provide hire purchase and lease finance for the medium and heavy commercial vehicles to individual truck operators. It is the largest asset financing NBFC in India concentrated mainly in pre-owned vehicle financing business.

Shriram Finance Share Price

1007.95 -7.45 (-0.73%)
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