Shriram Finance Ltd.

Shriram Transport Finance Company is all set to raise Rs 1,000 crore by issuing secured non-convertible debentures (NCD). The issue will open on June 27 and will close on July 9. The NCD issue would aggregate up to Rs 500 crore with an option to retain oversubscription of up to Rs 500 crore for issuance of additional NCDs.

The issue is rated ‘AA/Stable’ by CRISIL and ‘AA+’ by CARE. The rating of the NCDs by CRISIL indicates high degree of safety with regard to timely payment of interest and principal on the NCDs, while the rating of NCDs by CARE indicates high safety for timely servicing of debt obligations.

The raised fund will be used for financing activities such as lending and investments, to repay its existing loans and for business operations including capital expenditure and working capital requirements.

JM Financial and ICICI Securities are the lead managers to the issue and RR Investors Capital and Karvy Investor Services are the co-lead managers.

Shriram Transport Finance Company is the largest player in commercial vehicle finance. It lends finance for pre-owned trucks to new trucks. The company posted a net profit of Rs 340.62 crore for the quarter ended March 31, 2011 as compared to Rs 264.42 crore for the quarter ended March 31, 2010, up 29%.