Shriram Transport Finance to raise Rs 500 crore through NCD issue

Shriram Transport Finance, the largest commercial vehicle financier in the country, plans to raise Rs 500 crore by issuing secured non-convertible debentures to meet the lending requirement. The issue, with a coupon of 10.5%-11% will open in July and will close in 15 days.

""We are planning to raise Rs 500 crore through NCD issue,"" said Sanjay Mundra vice president Shriram Transport Finance. "While the coupon rate would depend on the interest rate movement but would be in the range of 10.5%-11%."

The Chennai-based company today posted lower net profit of Rs 308 crore in the fourth quarter of 2011-12 from Rs 340 crore, due to lower growth in advances. The company disbursed loans worth Rs 5,000 crore in the quarter against Rs 6,200 crore in the same period last year. Margins for the non-banking finance company has come down to 7.24% from 7.59% a year ago.

Source: EconomicTimes