The Hindu Business Line
Shriram City Union’s ₹100-cr NCD issue opens tomorrow
Shriram City Union Finance, a deposit-taking NBFC of the Shriram Group of companies, announced a public issue of secured redeemable non-convertible debentures. The NCDs will be of face value ₹1,000/each.
The first issue aggregates to ₹100 crore, with an option to retain oversubscription up to ₹650 crore, aggregating up to ₹750 crore. Rating agencies CARE and Crisil have assigned ‘AA+ stable’ and AA/Stable’, respectively, for the NCDs. The IPO will take place through the ASBA format and debentures would be issued in demat form.
The issue begins on Friday and closes on May 3, and will be listed on the BSE. Allotment will be on first-come-first-served basis.
The NCDs will be issued in three series under the initial issue. The first series is for 24 months with annual and cumulative interest payment options. The other two series are for three years and five years, respectively, with annual, cumulative and monthly interest payment options.
Shriram City Union Finance’s previous debenture issue took place in April 2014.
The funds raised will be utilised for company’s various financial needs.
On the impact of the IL&FS crisis on the NBFC sector, Krithika Duraiswamy, Assistant Vice-President of Shriram City Union, said the company has not been impacted hugely, since its target consumer range is the ₹10-15 lakh income group, and its main focus isMSMEs.