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.
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