Shriram City Union Finance Limited a deposit-accepting NBFC (Non Banking Finance Company) registered with RBI (Reserve Bank of India) and the largest small enterprise finance company in India, plans to raise monies through a public issue of Secured Non Convertible Debentures of face value of Rs. 1,000 each (NCDs) aggregating up to Rs. 250 crores with an option to retain oversubscription up to Rs. 250 crores for issuance of additional NCDs aggregating to a total of up to Rs. 500 crores, The Issue opens on September 12, 2012.
The NCDs proposed to be issued under this Issue have been rated “CARE AA” by CARE for an amount of up to Rs. 500 crores, and “CRISIL AA-/Stable” by CRISIL for an amount of up to Rs. 500 crores.
The rating of the NCDs by CARE indicates high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk. The rating of NCDs by CRISIL indicates high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.
Photocaption: Left – Right:
Mr. R. Chandrasekhar, Executive Director, Ms. Subhasri Sriram, Executive Director – CFO, SCUF
Mr. R. Duruvasan, Managing Director
The funds raised through this Issue, after meeting Issue expenses, will amongst others, be used for Shriram City’s various financing activities including lending and investments. The funds would also be used to repay the Company’s existing loans; for business operations including capital expenditure and working capital requirements. The NCDs are proposed to be listed on the NSE and the BSE.
JM Financial Institutional Securities Private Limited, A. K. Capital Services Limited and Edelweiss Financial Services Limited are the Lead Managers to the Issue while Integrated Enterprises (India) Limited is the Registrar to the Issue.
About Shriram City Union Finance..!
Shriram City Union Finance Limited, the largest small enterprise finance company in India, is a deposit-accepting NBFC registered with RBI, offering (1) financing for two wheelers, appliances and other commercial goods, (2) pre-owned and new vehicle loans, (3) personal loans, (4) loans against gold including small enterprise segment loans collateralized by gold, and (5) loans to the small enterprise finance segment.
Established in 1986, Shriram City has a track record of more than 25 years in the financial services sector in India. Since 2005 the Company has focused on the retail financing segment. The Company has a dominant share of 95 % in the small loan segment (loans of amount Rs. 1 Lakhs to Rs. 10 lakhs) & also leads the total Indian MSME (micro, small and medium enterprises market with 53 per cent share.
Shriram City is a part of the Shriram Group companies, which has a strong presence in financial services in India. Over the past 26 years the Company has established a pan-India presence, with 575 branches & 91 other business outlets as of June 30, 2012, across 17 states in India, with a significant presence in south India. As on June 30, 2012, the total employee strength of the Company was 3,672. Shriram City’s business outlet networks are interconnected and each business outlet is connected to its head office through an ERP platform.
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