Shriram Transport Finance Company Ltd NCD
(i) Incorporated in 1979,Chennai based Shriram Transport Finance Company Ltd is one of the largest asset financing non-banking finance companies in the organized sector in India that cater to first-time buyers (“FTB“) and small road transport operators (“SRTOs”) for financing pre-owned commercial vehicles. In addition, they provide commercial vehicle finance for new commercial vehicles. It also offers financial services to commercial vehicle operators, thereby providing comprehensive financing solutions to the road logistics industry in India.
(ii) The company has a long track record of over three decades in the commercial vehicle financing industry in India. It 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.
(iii) The company’s widespread network of branches across India has been a key driver of its growth over the years. As of March 31, 2018, it had 1,213 branches across India, including most of the major commercial vehicle hubs along various road transportation routes in India. It has also established its presence in 862 rural centers as of March 31, 2018, with a view towards increasing the market share in the pre-owned commercial vehicle market and reaching out to a relatively newer customer segment in rural areas.
Objective of NCD Shriram Transport Finance Company Ltd NCD:
1. For the purpose of onward lending, financing, and for repayment/ prepayment of interest and principal of existing borrowings of the Company; and
2. General corporate purposes.
Shriram Transport Finance Company Ltd NCD Details:
| Premium: | 2000 |
| Open Date: | Jun 27 2018 |
| Close Date: | Jul 20 2018 |
| Issue Type: | Fixed Price Issue NCD |
| Issue Size: | ₹ 5,000 Cr. |
| Face Value: | ₹ 1,000 Per NCD |
| Market Lot: | 1 NCD |
| Minimum Order Quantity: | 10 NCD |
| Listing At: | NSE,BSE |
Promoters:
The Promoter of the company is Shriram Capital Limited ("SCL"). SCL holds 5,91,73,023 Equity Shares in the Company aggregating 26.08% of the paid-up capital.
Financials:
| Particulars | Financial Performance( All figures are in Cr) | ||||
| 28-Feb-2018 | 31-Mar-17 | 31-Mar-16 | 31-Mar-15 | 31-Mar-14 | |
| Total Assets | 88470.37 | 74405.45 | 67959.02 | 59327.15 | 49235.46 |
| Total Revenue | 12276.83 | 10830.61 | 10293.48 | 8644.72 | 7888.25 |
| Profit After Tax | 1568.02 | 1257.34 | 1178.19 | 1237.80 | 1264.20 |
Credit Rating:
Shriram Transport Finance Company Ltd Ratings
(i) CRISIL: These NCD issue are graded with CRISIL AA+/Stable for an amount of up to ₹ 5,00,000 lakhs dated June 8, 2018.
(ii) India Ratings & Research: These NCD are garded IND AA+: Outlook Stable for an amount of up to ₹ 5,00,000 lakhs dated June 8, 2018.
Conclusion: The rating of the NCDs by CRISIL and India Ratings and Research indicate that instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations and carry very low credit risk.
Interest Rates:
| Series | I | II | III | IV | V | VI | VII |
| Interest type | Fixed | Fixed | Fixed | Fixed | Fixed | Fixed | Fixed |
| Frequency of Interest Payment | Monthly | Monthly | Annual | Annual | Annual | Cumulative | Cumulative |
| Tenor | 5 Years | 10 Years | 3 Years | 5 Years | 10 Years | 3 Years | 5 Years |
| NCD Holders in Category I and II | |||||||
| Coupon (%) | 8.93% | 9.03% | 9.10% | 9.30% | 9.40% | NA | NA |
| Redemption amount (Rs. Per NCD) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,298.91 | 1,560.30 |
| NCD Holders in Category III and IV | |||||||
| Coupon (%) | 8.93% | 9.03% | 9.10% | 9.30% | 9.40% | NA | NA |
| Additional Incentive | 0.10% | 0.10% | 0.10% | 0.10% | 0.10% | NA | NA |
| Aggregate % | 9.03% | 9.13% | 9.20% | 9.40% | 9.50% | NA | NA |
| Redemption amount (Rs. Per NCD) | 1,000 | 1,000 | 1,000 | 1,000 | 1,000 | 1,302.49 | 1,567.45 |
Post Tax returns:
The interest earned through NCDs will be added to the total income and will be taxed at 10%, 20% and 30% respectively depending upon the income slab.
Recommendation:
Shriram Transport Finance Company Ltd NCD Rating by InvestorZone team => 6/10
1-5: Fair
5-7: Good
7-10: Excellent
Lead Manager of Shriram Transport Finance Company Ltd NCD:
- Axis Capital Limited
- Edelweiss Capital Limited
Registrar of Shriram Transport Finance Company Ltd NCD:
- Karvy Computershare Private Limited
Discussion on Shriram Transport Finance Company Ltd NCD:
6 Comments
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As per market feedback shriram transport finance NCD ISSUE may hit the market on 15th October 2018.
Please tell me how to see the status of allotment of NCD of stfc of july2018
Hi There.
Please check the REGISTRAR website. In this case, it’s KARVY so check the status here:
http://corpreg.karvy.com/ipostatus/
In order to apply in Shriram Transport NCD , you must have demat account. The physical application is not allowed.
Allotment will be made on first come first serve basis and on the last date of oversubscription, the allotment will be made on a proportionate basis.
Example:
Suppose reserved quota for Retail category is 100 Cr.
Day 1: Application of worth 10 Cr received ( All Retails will get allotment whatever amount they have applied).
Day 2: Application of worth 20 Cr received ( All Retails will get allotment whatever amount they have applied).
Day 3: Application of worth 10 Cr received ( All Retails will get allotment whatever amount they have applied).
Day 4: Application of worth 30 Cr received ( All Retails will get allotment whatever amount they have applied).
Day 5: Application of worth 20 Cr received ( All Retails will get allotment whatever amount they have applied).
Now up to Day 5, a total application of 90 Cr has been received.
Day 6: Application of worth 50 Cr received( Now as Issue is oversubscribed, the retailers who applied on day 6 will get allotment on the proportionate basis.)
Hope it clears..
Reservation for different categories.
1. QIB( Qualified Institutional Buyers) = 10% of the issue ( 500 Cr)
2. NII( Non- Institutional Investors=10% of the issue ( 500 Cr)
3. HNI( High Net-worth Investors)= 40% of the issue (2000 Cr)
4. Retail category= 40% of the issue ( 2000 Cr).