Shriram City Union Finance NCD – April 2014 issue 11.75%

Shriram City Union Finance NCD – April 2014 issue 11.75%
RRK Advisory recommends purchase of Shriram City Union Finance Bonds issue April 2014. 
This issue size is small and hence we expect this will get sold within one day.
Recommended Investment Amount = 2-3 Lakhs
Recommended Term :  3 years, Cumulative option
11.75% for 60 months / 11.50% for 36 months & 11% for 24​ ​months.
Cumulative option is also available for each of these bonds.
“CARE AA” rating by CARE indicating high degree of safety.
Issue opens 16/04/2014 and allotment on “First Come First Serve” basis.

About the issue :

“Public issue by Shriram City of secured redeemable NCDs of face value of Rs 1,000 each, aggregating up to Rs 100 crore, with an option to retain over subscription up to Rs 100 crore for issuance of additional NCDs aggregating to a total of up to Rs 200 crore,” the company said. ICICI Securities and AK Capital Services are the lead managers to the proposed issue. The NCDs are proposed to be listed on the BSE.

Shriram City Union Finance’s  Rs 200 crore non-convertible debentures (NCDs) will open for subscription on April 16. The company is aiming to garner Rs 100 crore through NCDs with an option to retain over subscription to the extent of another Rs 100 crore, aggregating to a total of Rs 200 crore. NCDs are loan-linked securities issued by a company and cannot be converted into stocks and usually carry a higher interest rate than a convertible debenture. The issue would open on April 16 and close on May 16, as per draft prospectus filed with Sebi.

Issue Highlights 
•Face value of NCD – Rs. 1000.  Minimum application Rs.10,000
•Investments made in both Demat and Physical form.
•Rating: ‘CARE AA’ by CARE
•Listing at BSE.
About the company :
Shriram City Union Finance (SHRIRAMCity) was established in 1986, and is part of the three decade-old Chennai-based Shriram Group. As a deposit-accepting non-banking financial company (NBFC), SHRIRAMCity is today 
India’s premier financial services company, specialising in retail finance.
SHRIRAMCity has a comprehensive range of offerings comprising financing for Two wheelers, Three Wheelers, Four Wheeler finance (both new & pre-owned passenger and commercial), Personal Loans, Small Business Loans and Loan against gold.  This has made SHRIRAMCity a dominant player in the field and the only NBFC offering a wide product range under one roof. 
With over 1000 Business Outlets across the country, SHRIRAMCity enjoys a high credit rating, as well as listing on the BSE, NSE & Madras Stock Exchanges.

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