Shriram Finance Ltd.

In a bid to support financing activities, non-banking finance company Shriram Transport Finance is planning to raise around Rs 500 crore through non convertible debentures (NCDs). In this regard, the company has filed a draft offer document for public issue of secured redeemable NCDs of face value of Rs 1,000 each, NCDs aggregating up to Rs 250 crore with an option to retain over-subscription up to Rs 250 crore for issuance of additional NCDs aggregating to a total of up to Rs 500 crore.

The proceeds from the issue will be used for financing activities including lending and investments. The company will also use the fund for repaying existing loans and for business operations including capital expenditure and working capital requirements.

The lead managers of the issue are JM Financial Institutional Securities and A K Capital Services, while Integrated Enterprises (India) is the registrar.

Shriram Transport Finance is a flagship company of the Chennai-based Shriram group and is classified as deposit taking Asset Financing NBFC. The company was with an objective to provide hire purchase and lease finance for the medium and heavy commercial vehicles to individual truck operators.