About Shriram Transport Finance Company Limited (STFC) by pcu59739

VIEWS: 37 PAGES: 4

									                                            About Shriram Transport Finance Company Limited (STFC)

                                              About the Company
                                              ⇒      STFC is one of the largest asset financing NBFCs in India

                                              ⇒      STFC is among the leading organized finance provider for the commercial vehicle
                                                     industry with a focus to provide various credit facilities to Small Truck Operators.

                                              ⇒
Shriram Transport Finance Company Limited




                                                     The Company was incorporated in the year 1979

                                              ⇒      STFC is a part of the “Shriram” conglomerate which has a significant presence in
                                                     financial services viz., commercial vehicle financing business, consumer finance, life
                                                     and general insurance, stock broking, chit funds and distribution of financial products

                                              ⇒      STFC has PAN India presence through wide network of 479 branches and tie up with
                                                     500 private financiers across the country as on 31st March, 2009.

                                              ⇒      STFC’s NCDs are rated ‘CARE AA+’ by CARE and ‘AA (ind)’ by Fitch.

                                              ⇒      STFC has a strong financial track record and has total assets under management
                                                     (AUM) in excess of INR 23,281 crores as on 31 st March 2009.

                                              ⇒      STFC’s Net NPA levels as on 31.03.2009 were 0.83%

                                              ⇒      The net interest margins as on 31.03.2009 was 6.99%


                                              Financial Performance
                                                                                                                                                  INR crores
                                                               Particulars                        FY 2006 – 07             FY 2007 – 08        FY 2008 – 09
                                               Revenue                                                  1415.92            2466.19               3692.43

                                               PBDIT                                                    1037.40            1896.67               2900.01

                                               PBT                                                      289.22             605.83                920.63

                                               PAT                                                      190.40             389.82                612.40
                                   Debt Public Issue - Issue Structure
                  Debt Public Offer – Subscription Period

                   Issue Open Date                                                                July 27, 2009
                   Issue Close Date*                                                            August 14, 2009


                  Issue Size

                  Base issue of Rs. 50,000 Lakhs and option to retain over-subscription upto Rs. 50,000 Lakhs


                  Debt Public Offer – Common Terms


                    Issuer Shriram                            Transport Finance Company Limited
                    Issue                          Public Issue by the Company of NCDs aggregating to Rs. 50,000
                                                   lakhs with an option to retain over-subscription upto Rs. 50,000
                                                   lakhs for issuance of additional NCDs
Issue structure




                    Stock Exchanges
                    proposed for listing of        NSE
                    the NCDs
                    Issuance and Trading           Compulsorily in dematerialised form
                    Trading Lot                    1 (one) NCD
                    Depositories                   NSDL and CDSL
                    Security                       Security for the purpose of this Issue will be created in accordance
                                                   with the terms of the Debenture Trust Deed. For further details
                                                   please refer to the section titled “Issue Structure” beginning on page
                                                   254 of the Prospectus.
                    Rating                         ‘CARE AA+’ by CARE and ‘AA (ind)’ by Fitch
                    Issue Schedule      ?          The Issue shall be open from July 27, 2009 to August 14, 2009 with
                                                   an option to close earlier and/or extend upto a period of thirty days.
                                                   3 (three) Business Days from the date of receipt of application or the
                    Pay-in date                    date of realisation of the cheques/demand drafts, whichever is later.
                     Deemed Date of                  Deemed date of allotment shall be the date of issue of the letter of
                     Allotment                       allotment / regret.
                  ? [The subscription list shall remain open for a period as indicated, with an option for early closure or extension
                  by such period, upto a period of 30 days from date of opening of the Issue, as may be decided by the Board of
                  Directors of our Company.]
                Debt Public Issue - Issue Structure
Issue Structure – Investment Options

 Options                  I                 II                III                IV                   V
 Tenor              60 months         60 months          60 months         60 months            36 months
 Frequency          Half-yearly          Annual          Cumulative           Annual               Annual
 of Interest
 Payment
 Minimum               Rs. 10,000/- (10 NCDs) (for option I, II, III, IV ,V NCDs either taken
 Application                                  individually or collectively)
 Face Value         Rs.1,000/-         Rs.1,000/-         Rs.1,000/-       Rs.1,000/-            Rs. 1,000/-
 and Issue
 Price of
 NCDs
 (Rs. / NCD)
 Coupon (%)         11.00% per        11.25% per        11.03% per         11.00% per           10.75% per
 p.a.                  annum             annum          annum to be           annum                annum
                                                        compounded
                                                          quarterly
 Yield on          11.30% per        11.25% per         11.50% per        11.00% per            10.75% per
 redemption           annum             annum              annum             annum                 annum
 Put and call            NIL              NIL           At the end of     At the end of              NIL
 option                                                  48 months         48 months
 Redemption        Staggered in       Staggered in          Bullet             Bullet               Bullet
                   ratio of 40%,      ratio of 40%,     repayment at       repayment at         repayment at
                      40% and            40% and          end of 60          end of 60            end of 36
                    20% at the         20% at the         months**           months**              months
                   end of 36, 48      end of 36, 48
                       and 60             and 60
                      months,            months,
                   respectively.      respectively.
** Subject to exercise of put/call option

Additional Interest Rate at the rate of [0.25] % p.a. for Senior Citizens in Option I & Option II.



Interest on Application Money
To applicants to whom NCDs are allotted pursuant to the Issue from the date of
realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of
the application whichever is later upto one day prior to the Deemed Date of Allotment, at
the rate of 8.00% per annum .


Interest on Application Money refunded
On application money which is liable to be refunded the interest shall be paid from the date
of realization of the cheque(s)/demand draft(s) or 3 (three) days from the date of receipt of
the application whichever is later upto one day prior to the Deemed Date of Allotment, at
the rate of 2.50% per annum. Such interest shall be paid along with the monies liable to be
refunded only on valid application received.
                           Debt Public Issue – Basis of Allotment
                     Basis of Allotment

                     (a)    Grouping of Applications and Allocation Ratio              : Applications received from various
                            applicants, including applications from NRI applicants, shall be grouped together on the following basis:


                              i)   Further with respect to applications received from Retail and Non Retail (other
                                   than Institutions) applicants, applications by applicants who apply for NCDs
                                   aggregating to a value not more than Rs. 1 Lakh, across all series of NCDs,
                                   (Option I, Option II, Option III, Option IV and/or Option V), shall be grouped
                                   together, (“Retail Portion”) while applications by applicants who apply for NCDs
                                   aggregating to a value exceeding Rs. 1 Lakh, across all series of NCDs, (Option I,
                                   Option II, Option III, Option IV and/or Option V), shall be separately grouped
                                   together, (“Non Retail Portion”).

                     (b)    Allotments in the first instance:          Applicants belonging to the Retail Portion will be
                            allocated NCDs upto 40% of the Issue size, and applicants belonging to the Non Retail
Basis of Allotment




                            Portion shall be allocated NCDs upto 40% of the Issue size, (“Allocation Ratio”).
                            Allotments, in consultation with the Designated Stock Exchange, shall be made on a
                            first-come first-serve basis,         based on the date of presentation of each
                            application to the Bankers to the Issue, in each Portion subject to the Allocation
                            Ratio.

                     (c)    Under Subscription:       If there is any under subscription in any Portion, allotments will
                            be made to applicants of the remaining Portions on a first come first serve basis

                     (d)    Allotments in case of oversubscription:           In case of an oversubscription, allotments
                            to the maximum extent, as possible, will be made on a first-come first-serve basis.   All
                            applications received on the same day by the Bankers to the Issue would be
                            treated at par with each other.        Allotment within a day would be on proportionate
                            basis, where NCDs applied for exceeds NCDs to be allotted.

                            In all proportionate allotments that are less then 10 NCDs per application, successful
                            applicants shall be determined by draw of lots in such manner that allotment to each
                            application is not less then 10 NCDs and in multiple of 1 NCD thereafter.

                     (e)    Applicant applying for more than one series of NCDs:                    If an applicant has applied
                            for more than one series of NCDs, (Option I, Option II, Option III, Option IV and/or
                            Option V, individually referred to as “Series”), and in case such applicant is entitled to
                            allocation of only a part of the aggregate number of NCDs applied for, the Series-wise
                            allocation of NCDs to such applicants shall be in proportion to the number of NCDs
                            with respect to each Series, applied for by such applicant, subject to rounding off to
                            the nearest integer, as appropriate in consultation with Lead Manager and Designated
                            Stock Exchange.

                            Minimum allotments of 10 NCDs and in multiples of 1 NCD thereafter would be made
                            in case of each valid application.

                     All decisions pertaining to the basis of allotment of NCDs pursuant to the Issue shall be
                     taken by our Company in consultation with the Lead Managers and the Designated Stock
                     Exchange and in compliance with the aforementioned provisions of this Prospectus.

                     Disclaimer
                     Kindly refer to the Prospectus for further details. The information provided above, based on Prospectus dated July
                     16, 2009, does not constitute to an offer, invitation of solicitation to purchase or sell, any securities of STFC and
                     should not be considered as a recommendation that any investor/s should subscribe for or purchase any of STFC's
                     securities including non convertible debentures. Neither this information nor any other documentation or information
                     (or any part thereof), delivered or supplied under or in relation to the non convertible debentures or other securities
                     of STFC shall be deemed to constitute an offer of or an invitation.

								
To top