Personal Finance, Investments, and other things: Good NCD issue coming up

Sunday, July 14, 2013

Good NCD issue coming up

Shriram Transport Finance is certainly a good company and a low-risk investment option for NCD's. Worth considering - also go through the two articles - links given at the end, one on NCD's in general and the other on the tax implications. A greater than 10 percent post-tax return is very good in today's context.

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Shriram Transport Finance Limited will open its public issue of Secured Redeemable NCDs of the face-value of 1,000 each aggregating up to 375 crores with an option to retain over-subscription upto 375 crore for issuance of additional NCDs aggregating to a total of upto 750 crore ("Issue"). Allotments will be on a First Come First Serve Basis.

The NCD Issue has five investment options and yield is upto 11.15%. The Issue opens for subscription on July 16, 2013.

The NCDs have been rated 'CRISIL AA/Stable' by CRISIL and 'CARE AA+' by CARE. The above ratings indicate high degree of safety for timely servicing of financial obligations and these instruments carry very low credit risk.

Issue Details

Listing		Both on NSE & BSE
Tenure		36 months		60 months
Series		I	IV	II	III	V
Interest Payout		Annual	Cumulative	Anuual	Monthly	Cumulative
Effective Yield (% p.a.)	Individuals	10.90%	10.90%	11.15%	11.15%	11.15%
Effective Yield (% p.a.)	Non-Individuals	9.65%	9.65%	9.80%	9.80%	9.80%
Redemption Amount	Individuals	Face Value + Interest Accrued	1,364.33 per NCD	50% face value at the end of 48 months and remaining 50% at the end of 60 months	Face Value + Interest Accrued	763.37 per NCD at the end of 48 months and 848.48 per NCD at the end of 60 months
Redemption Amount	Non-Individuals	Face Value + Interest Accrued	1,318.67 per NCD	50% face value at the end of 48 months and remaining 50% at the end of 60 months	Face Value + Interest Accrued	726.93 per NCD at the end of 48 months and 798.17 per NCD at the end of 60 months

Company Profile:

	Largest asset financing NBFC in India*
	Track record of over 34 years
	Pan-India presence through widespread network of 539** branches
	Total employee strength was approximately 16,178**
	AUM of 50,120 Cr as on Mar 31, 2013
	Total Income of 6563.59 Cr & Profit After Tax of 1,360 Cr for FY 2013
	Capital Adequacy Ratio (CAR) of 20.74% as on March 31, 2013