Shriram Finance bond issuance got oversubscribed 2.23 times

The issue received bids worth Rs 661 crore as per the data available on the electronic platforms of BSE and NSE, the company said in a release without offering the pricing and tenor of the issue.


Devdiscourse News Desk | Mumbai | Updated: 30-10-2018 17:07 IST | Created: 30-10-2018 16:37 IST
Shriram Finance bond issuance got oversubscribed 2.23 times
The issue from Shriram Transport, which is primarily truck financier, was lapped by retail investors, whose portion got oversubscribed by a hefty 4.67 times. "The retail and HNI category had 80 per cent of the issue. (Image Credit: Twitter)
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Non-banking finance company (NBFC) Shriram Transport Finance (STFC) Tuesday said its Rs 300-crore bond issuance got oversubscribed 2.23 times. The issue comprises three tenor bonds of three, five and ten years, offering a coupon in the range of 9.12 to 9.70 per cent was closed on October 29.

The issue received bids worth Rs 661 crore as per the data available on the electronic platforms of BSE and NSE, the company said in a release without offering the pricing and tenor of the issue.

The development is interesting as Monday LIC Housing Finance had deferred its Rs 1,500-crore NCD plan citing higher cost, which is prevailing at 9.5 per cent for better rates paper or even more for others.

The issue from Shriram Transport, which is primarily truck financier, was lapped by retail investors, whose portion got oversubscribed by a hefty 4.67 times. "The retail and HNI category had 80 per cent of the issue.

The NCDs will help the company to have long-term funds and diversify the borrowings basket as well," Shriram Transport Finance managing director and chief executive Umesh Revankar said.

The company would use the funds from the debt sale towards for onward lending and for repayment of interest and principal of its existing borrowings and for general corporate purposes. The NCDs will be listed on BSE and NSE.

(With inputs from agencies.)

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