The Hindu : Business : Shriram Transport NCD offer opens on June 27

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Shriram Transport NCD offer opens on June 27

Corporate Reporter

CHENNAI: Shriram Transport Finance Company is optimistic about oversubscription for its proposed non-convertible debenture issue, which opens for subscription on June 27 and closes on July 9.

Addressing presspersons here, R. Sridhar, Managing Director, said the company was successful in raising funds in this format. It raised Rs. 1,000 crore in 2009 and Rs. 500 crore in 2010. The present issue is for NCDs worth Rs.500 crore with an option to accept oversubscription to the extent of Rs. 500 crore. Investors can safely invest in NCDs attracting an interest rate of 11 -11.60 per cent annually with strong business growth achieved in the past three decades, Mr. Sridhar said. The company, which has presence in 488 locations, had assets of Rs. 36,000 crore under management as on March 31, 2011. The net NPA stood at 0.38 per cent with a strong recovery mechanism in place with the deployment of 8,000-9,000 field executives for collecting payments. The capital adequacy ratio was 24.85 per cent against the Reserve Bank of India stipulated minimum requirement of 12 per cent. As the NCD is listed on the National Stock Exchange, investors can exit any time, if they want to redeem the invested money without any tax commitments, Mr. Sridhar said.

Total income of the company has grown in last four years to Rs. 5,429.65 crore from Rs. 1,421.39 crore in 2007. The net profit after tax has increased to Rs.1,229.88 crore from Rs. 190.40 crore in the same period.

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