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Monday, September 25, 2023
HomeUncategorizedShriram City plans to raise up to Rs. 200 cr via NCDs

Shriram City plans to raise up to Rs. 200 cr via NCDs

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Shriram City Union Finance is planning to raise up to Rs. 200 crore through non-convertible debentures (NCDs) to support financing activities.

The company is proposing to raise Rs. 100 crore, with an option to retain over subscription to the extent of another Rs. 100 crore.

NCDs are loan-linked securities issued by a company and cannot be converted into stocks and usually carry a higher interest rate than a convertible debenture.

The funds raised through the issue are to be used for financing and lending activities, to repay existing loans and meet business operations including for capital expenditure and working capital requirements.

“Public issue by Shriram City of secured redeemable NCDs of face value of Rs. 1,000 each aggregating up to Rs. 100 crore with an option to retain over subscription up to Rs. 100 crore for issuance of additional NCDs aggregating to a total of up to Rs. 200 crore,” the company said in a draft prospectus filed with Sebi.

ICICI Securities and A K Capital Services are the lead managers to the proposed issue. The NCDs are proposed to be listed on the BSE.

Earlier in December, the company had garnered around Rs. 154 crore against the base size of Rs. 100 crore.

Shriram City Union Finance, part of Shriram Group, has a comprehensive range of offerings comprising finance for vehicles, personal loans, small business loans and loan against gold.

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