Umesh Revankar, Managing Director and Chief Executive Officer of Shriram Transport Finance informed that the firm would raise Rs 1,000 crore through non-convertible debentures before June 2013.
The company may raise a major portion of this amount from small individual investors and the remaining will be raised from qualified institutional investors and institutional investors.
This is part of the Rs 25,000-crore debt that the firm intends to raise in 2013-14 for lending, redemption of debt and also to meet maturities.
The country’s largest truck financier has a lending requirement of at least Rs 2,000 crore every month in order to meet its disbursement target of Rs 27,000-28,000 crore in 2013-14. The company will see maturities of about Rs 500-600 crore in the current fiscal from its earlier public issues.
According to an executive, the non-convertible debenture (NCD) will offer returns of about 10.5 percent for a five-year duration. Revankar said the rate will be lower as compared to the previous year and will be determined after the Reserve Bank’s policy announcement on May 3.
In 2013-14, the company expects asset under management to expand 15 percent. Its total asset under management at the end of 2012 was worth Rs 49,269 crore.
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