Shriram Transport Finance company – STFC one of the largest NBFC is coming up with NCD issue in 7th Oct 2013.Company is looking to raise Rs. 500 crore through this NCD issue.
We are herewith details of Shriram Transport Finance Company NCD – Oct 2013.
Interest Rates:
|
Series & Tenure |
Intrest Rates |
Intrest Payment Frequency | ||
| Individual/HUF | Others | |||
| I | 36 Months |
11.25% |
10.75% |
Annual |
| II | 60 Months |
11.50% |
10.75% |
Annual |
| III | 84 Months |
11.75% |
10.75% |
Annual |
| IV | 36 Months |
11.25% |
10.75% |
Cumulative |
| V | 60 Months |
11.50% |
10.75% |
Cumulative |
| VI | 84 Months |
11.75% |
10.75% |
Cumulative |
Here Individual and HUF has chance to fetch higher rate of interest 0.5%-1% based on duration.
Series I,II and III offers annual interest payment while Series IV,V and VI are on cumulative interest.
Tax is applicable on maturity amount and TDS will be deducted.
Highest interest rate 11.75% is for period of 84 months (7 Years).
The NCD issue is aggregating upto Rs 250 crore with an option to retain over-subscription of Rs 250 crore.
Face value per bond is Rs. 1000/-.
Credit Rating: CARE AA+ and CRISIL AA.
Important Dates:
- Issue Open Date:07/10/2013.
- Issue Close Date:21/10/2013.
Who can invest?
Four categories of investors can apply. Category 1 – institutional investors; category 2 – non institutions investors; category 3- HNIs, HUF via Karta (aggregate investment of more than Rs 5 lakh across series); and category 4- retail investors with aggregate investments across series less than Rs 5 lakh.
What should you do?
This NCD is secured means less risky but not totally risk free. Investor in lower tax bracket can earn higher return more than 10 percent post tax, which is higher than fixed deposit.
This is a good investment opportunity for those in the lowest tax bracket. Higher tax bracket individual may opt for tax free bonds.