Secured NCD Issue- Shriram Transport Finance Co Ltd

Shirram Transport Finance Ltd - NCD Issue - Product Note.pdf Download this file

 

Issue is opening on 27th June 2011 and closing on 9th July 2011.  

Note: Allotment will be done on 1st come and 1st serve basis. 

 

Salient features of the issue

l  The secured NCD issue is rated “AA/stable” by CRISIL and “CARE AA+” by CARE. STFC will create appropriate security in favour of the Debenture Trustee for the secured NCD holders on the assets to ensure 100% asset cover for the secured NCDs.

l  The NCDs bear an attractive coupon rate between 11 .35 % p.a.  and 11. 60% p.a.

l  There are 2 investment options, suiting the needs of different categories of investors.

l  The NCD’S are proposed to be listed on NSE and will be available in Demat form only, facilitating trading of these debentures.

l  In case of a resident debenture holder, TDS on interest will not be applicable since the debentures will be listed on the NSE.

l  Under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed debenture is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer

 

Investment Options (Secured NCD)

Options

I

II

Interest Payment

Annual

Annual

Minimum Application

Rs.10,000/-

Rs.10,000/-

In Multiples of 

Rs.1000/-

Rs.1000/-

Face Value (FV) of NCDs

Rs.1,000/-

Rs.1,000/-

(Rs. / NCD)

Category of Investors

QIB/NII

Individual Investor & HUF

QIB/NII

Individual Investor & HUF

> 5 lakhs

≤ 5 lakhs

> 5 lakhs

≤ 5 lakhs

Coupon (%) p.a.

11.1%

11.35%

11.6%

11.0%

11.1%

11.35%

Put and call option

Exercisable at the end of 48 months from the Deemed Date of Allotment

N/A

Tenor*

60 months

36 months

Redemption  Amount

Repayment of the Face Value  + any interest that may have accrued at the Redemption Date, or at the date of early redemption if any Put Option or Call Option is exercised

Repayment of the Face Value + any interest that may have accrued.

Nature of Indebtedness

Pari Passu with other secured creditors and priority over unsecured creditors

Pari Passu with other secured creditors and priority over unsecured creditors

 

 

 

 

 

*Subject to the exercise of the put / call option in the manner set out in the Prospectus;

 

 


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