Shriram City Union Finance NCD

Shriram City Union Finance NCD Opens On 21st Aug

Latest Non-Convertible Debenture Scheme

Non-Banking financial company sector has suffered from a shortage of funds. On Wednesday, Shriram City Union Finance has announced its NCD raised around Rs 900 crore. The issue has opened for subscription on 21st August and closes on 19th September this year. Shriram City Union Finance NCD offers a secured redeemable non-convertible debenture. It offers a 9.86% per year.

Basic Details of Shriram City Union Finance NCD

Shriram City Union Finance Tranche 2 NCD offers around Rs 1000 cores. The base size of the issue is Rs 100 crore with the option of retaining up to Rs 900 crores. This scheme offers eight different options and tenures of 24 months, 36 months, and 60 months. The offer maintains a face value of Rs 1,000 per NCD bond. One will need to invest a minimum of Rs 10,000 means a minimum of 10 NCD bonds and in multiples of  1 NCD bond.

The interest payables available monthly, yearly, and cumulatively depending on the option chosen by the investor. It listed on BSE and these are liquid investments.

The objective of the Issue: 

As of draft prospectus, the money-raising from the funding will utilize for onward lending, financing, repayment, and principal of existing borrowing. General Corporate Purposes.

Interest Rates of NCDs

Options  Category   Tenure Interest Payment Coupon Rate (Interest ) Individuals Effective Yield Maturity Value
I  Secured  24 Months  Annual  9.55% 9.54% 1,000
II Cumulative NA 9.55% 1,200
III  36 Months Annual  9.70% 9.69% 1,000
IV Monthly  9.30% 9.70% 1,000
V Cumulative NA 9.70% 1,3200
VI  60 Months Annual 9.85% 9.84% 1,000
VII Monthly 9.45% 9.86% 1,000
VIII Cumulative NA 9.85%  1,600

The coupon rates of the scheme ranged between 9.30% to 9.85%. The effective Yield ranged between 9.54% to 9.86%.  The NCDs have been rated as AA+ by care ratings and AA by Crisil.

NCDs Offered

 Category  NCD’s Reserve %
Qualified Institutional Buyers  10%
 Non-Institutional Investors  10%
 Retail Investors  40%
 High-Net worth Investors  40%

The Scheme reserved for High-Net worth investors portion of 40 percent, 10 percent for Qualified institutional buyers, 40 percent of retail investors, and 10 percent for Non-Institutional investors.

The fund will manage by A.K Capital Services Limited, Edelweiss Financial Services Limited.

Shriram City Union Finance is a part of Shriram Group. It provides Two-wheeler loans, Personal Loans, Auto Loans, Gold Loans, Loans for New three and 4 wheeler vehicles.

Disclaimer: This post is just information about the scheme. It does not give any advice or recommendation. Please read the offer document carefully before investing.

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