Shriram City Union NCD issue opens tomorrow

Non-banking finance company Shriram City Union Finance said that it will raise up to Rs750 crore through a non-convertible debenture ( NCD) issue which opens for subscription tomorrow.

The issue will let investors choose between three years and five years’ tenor options and will carry a coupon rate of up to 12.1% per annum.
The basic objective of the issue, which is open for subscription till August 27, is to raise Rs375 crore, while the company has a green-shoe option to retain oversubscriptions of an equal amount.



The company plans to use the proceeds of the issue in regular financing business and for repaying debt.

The company plans to list the NCDs on both the BSE and the National Stock Exchange from the beginning itself so that investors get the liquidity.

The company, a part of the Shriram Group, had clocked a 47% growth in net profit in FY11 at Rs241 crore.