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
ListingBoth on NSE & BSE
Tenure36 months 60 months
Series IIV IIIII V
Interest Payout AnnualCumulative AnuualMonthly Cumulative
Effective Yield (% p.a.) Individuals10.90% 10.90%11.15%11.15% 11.15%
Non-Individuals9.65% 9.65%9.80%9.80% 9.80%
Redemption AmountIndividuals Face Value + Interest Accrued1,364.33 per NCD 50% face value at the end of 48 months and remaining 50% at the end of 60 months Face Value + Interest Accrued763.37 per NCD at the end of 48 months and 848.48 per NCD at the end of 60 months
Non-Individuals Face Value + Interest Accrued1,318.67 per NCD 50% face value at the end of 48 months and remaining 50% at the end of 60 months Face Value + Interest Accrued726.93 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
* Source: D&B Research Report
** Figures as on March 31, 2013
Regards,
ICICI Securities
Private Wealth Management




Dinesh Gopalan
mob: 9845257313; blog: http://www.dineshgopalan.com

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