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.
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.
*Source: Frost and Sullivan - Analysis of MSME Loan Markets for NBFCs – July 2011
About Shriram City Union Finance Limited:
Shriram City Union Finance Limited, the largest small enterprise finance company in India (Source: The Frost and Sullivan report titled “Analysis of MSME Loan Markets for NBFCs – July 2011”), is a deposit-accepting NBFC registered with RBI, offering (i) financing for two wheelers, appliances and other commercial goods, (ii) pre-owned and new vehicle loans, (iii) personal loans, (iv) loans against gold including small enterprise segment loans collateralized by gold, and (v) loans to the small enterprise finance segment.
Established in 1986, Shriram City has a track record of more than twenty five 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) and also leads the total Indian micro, small and medium enterprises market with 53% share, (Source: The Frost and Sullivan report titled “Analysis of MSME Loan Markets for NBFCs – July 2011”). .
Shriram City is a part of the Shriram Group companies, which has a strong presence in financial services in India. Over the last 26 years the Company has established a pan-India presence, with 575 branches and 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. Shriram City Union Finance Limited, (“Company”), is proposing, subject to receipt of requisite approvals, market conditions and other considerations, a public issue of its Secured Redeemable Non-Convertible Debentures, (“NCDs”) and has filed a prospectus, (“Prospectus”), with the Registrar of Companies, Tamil Nadu and will file the Prospectus with the Securities and Exchange Board of India, the National Stock Exchange of India Limited and the BSE Limited. The Prospectus is available on the website of the Company and the Lead Managers to the Issue. Investors should note that investment in NCDs involves a high degree of risk and for details relating to the same, see the section entitled “Risk Factors” on page 1 of the Prospectus. Investors are urged to take any decision to invest in the NCDs issued pursuant to the Prospectus solely on the basis of the disclosures made therein.
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