- Secured, redeemable non-convertible debentures of a face value of Rs. 1000 each (“NCDs”).
- The Tranche 1 Issue is for a base issue size of Rs. 1,000 million (“Base Issue Size”) with an option to retain oversubscription up to Rs. 6,500 million aggregating up to Rs.7,500 million (“Tranche 1 Issue Limit”) which is within the shelf limit of Rs. 30,000 Million (“Shelf Limit”).
- The offer has been rated ‘CARE AA+ Stable’ (Double A Plus; Outlook: Stable) by CARE and ‘CRISIL AA/Stable’ (pronounced as CRISIL double A rating with Stable outlook) by CRISIL.
- The Tranche 1 Issue opens on April 05, 2019 and closes on May 3, 2019 with an option of early closure or extension.
- The NCDs offered through this Tranche 1Prospectus are proposed to be listed on the BSE.
- Shriram City Union Finance Limited, a deposit-taking NBFC under Shriram group of companies (the “Shriram Group”), a prominent financial services conglomerate in India is coming out with a public issue of secured redeemable non-convertible debentures of face value of Rs. 1000 each (“NCDs”). The Tranche 1 Issue is for a base issue size of Rs. 1,000 million, with an option to retain over-subscription up to Rs. 6,500 million, aggregating up to a total of Rs. 7,500 million. The Tranche 1 Issue opens on April 05, 2019 and closes on May 3, 2019, with an option of early closure or extension.
MUMBAI, (GNI): The NCDs proposed to be issued under the Issue have been rated ‘CARE AA+ Stable’ (Double A Plus; Outlook: Stable) by CARE and ‘CRISIL AA/Stable’ (pronounced as CRISIL double A rating with Stable outlook) by CRISIL for an amount of upto ` 30,000 million vide their letters dated December 11, 2018 (and revalidated on February 14, 2019 and further revalidated on March 20, 2019) and December 6, 2018 (and revalidated on February 19, 2019 and further revalidated on March 19, 2019) respectively. The rating of the NCDs by CARE and CRISIL are considered to have a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The ratings provided by CARE and CRISIL may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating.
These NCDs, bearing a fixed rate of interest, are being offered under eight different series.
The terms of each series of NCDs, offered under Tranche 1 Issue are set out below:
|Frequency of Interest Payment||Annual||Cumulative||Annual||Monthly||Cumulative||Annual||Monthly||Cumulative|
|Minimum Application||Rs.10,000 (10 NCDs) across all series collectively|
|Face Value/ Issue Price of NCDs||Rs. 1,000 per NCD|
|In multiples of thereafter||Rs. 1,000 (1 NCD) across all series|
|Tenor||24 months||24 months||36 months||36 months||36 months||60 months||60 months||60 months|
|Coupon (% per annum)||9.55||NA||9.65||9.26||NA||9.75||9.35||NA|
|Effective Yield (% per annum)||9.55||9.55||9.64||9.65||9.65||9.74||9.75||9.75|
|Mode of Interest Payment||Through various modes available|
|Amount on Maturity (`)||1,000||1,200.15||1,000||1,000||1318.70||1000||1,000||1593.15|
With respect to series where interest is to be paid on an annual basis, relevant interest will be paid on each anniversary of the Deemed Date of Allotment on the face value of the NCDs. The last interest payment under annual series will be made at the time of redemption of the NCDs.
The funds raised through this Tranche 1 Issue will be utilised for company’s various financing, lending, investments, repaying its existing liabilities or loans, towards its business operations, capital expenditure, working capital requirements and general corporate purposes, after meeting the expenditures of and related to the Issue and subject to applicable statutory/regulatory requirements.
The NCDs offered through this Tranche 1 Prospectus are proposed to be listed on the BSE. BSE is the Designated Stock Exchange for the Tranche 1 Issue.
The Lead Managers to the Issue are A. K. Capital Services Limited and Edelweiss Financial Services Limited.
Catalyst Trusteeship Ltd. (formerly known as GDA Trusteeship Limited) is the Debenture Trustee andIntegrated Registry Management Services Private Limited is the Registrar to the issue.
About Shriram City Union Finance Limitedis a deposit-taking NBFC with multiple product offerings, including small enterprise/ MSME financing, loans against gold, financing for two-wheelers, auto loans, personal loans, and housing finance loans. Shriram City Union Finance is a part of the Shriram group of companies (the “Shriram Group”), a prominent financial services conglomerate in India.
Having commenced operations in 1986, the Company has established a pan-India presence, and remains committed to serving unbanked and underserved sections of its customer-base.
The Prospectus is available on the websites of SEBI atwww.sebi.gov.in, BSE atwww.bseindia.com, the Company at www.shriramcity.com and the Lead Managers i.e. A K Capital Services Limited and Edelweiss Financial Services Limited atwww.akgroup.co.in andwww.edelweissfin.com, respectively.ends