Shriram Transport Finance Corporation Limited – NCD Issue
Issue Opening Date Issue Closing Date
July 2, 2014 July 22, 2014
Public Issue by Shriram Transport Finance Company Limited, (“STFC” or “Company”) of 50,00,000 Secured Redeemable Non-Convertible Debentures of face value of Rs. 1,000 each, (“NCDs”), for an amount aggregating upto Rs 500 Crores (“Base Issue Size”), with an option to retain oversubscription upto the Shelf Limit (i.e. Rs 3000 crores) i.e. 3,00,00,000 NCDs (“Tranche-I Issue”)
INVESTMENT RATIONALE
The issue carries effective yields ranging from 9.85% p.a. to 11.50% p.a. depending up on the category of investors and series of Non-Convertible Debentures applied for
Opportunity to invest in one of the largest asset financing NBFC in India
These NCDs are proposed to be listed on the National Stock Exchange of India Limited (“NSE”) and the BSE Limited (“BSE”)
COMPANY PROFILE
STFC was established in 1979 and has a long track record of over three decades in the commercial vehicle financing industry in India.
STFC has been registered as a deposit-taking NBFC with the RBI since September 4, 2000 under Section 45IA of the Reserve Bank of India Act, 1934.
STFC is a part of the Shriram group of companies which has a strong presence in financial services in India, including commercial vehicle financing, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products such as life and general insurance products and mutual fund products, as well as a growing presence in other businesses such as property development, engineering projects and information technology.
As of March 31, 2014 STFC had 654 branches across India, including at most of the major commercial vehicle hubs along various road transportation routes in India.
STFC’s Assets under Management (AUM) have grown by a CAGR of 16.54 % from Rs. 29,185.93 crores as of March 31, 2010 to Rs. 53,834.39 crores as of March 31, 2014, on an unconsolidated basis.
STFC’s Total income on an unconsolidated basis increased from Rs 4,501.38 crores in fiscal 2010 to Rs. 7,888.26 crores in fiscal 2014 at a CAGR of 15.06%
STFC’s capital adequacy ratio as of March 31, 2013 was 23.37 % computed on the basis of applicable RBI requirements on an unconsolidated basis, compared to the RBI stipulated minimum requirement of 15.00%.
STFC’s Net NPAs as a percentage of Net Loan Assets was 0.84% as of March 31, 2014, on an unconsolidated basis.
STFC’s net profit after tax increased from Rs. 873.12 crores in fiscal 2010 to Rs. 1,264.21 crores in fiscal 2014, at a CAGR of 9.69%.
