Shriram Transport Finance Company NCDs
The non-convertible debentures (NCDs) of Shriram Transport Finance Company (STFC) is now open from today, May 17, 2010 and will be open till May 31, 2010. This public issue of non-convertible debentures comes with a face value of Rs. 1000 each to aggregate up to Rs. 25,000 lakhs also comes with an option of over retaining Rs. 25,000 lakhs over subscription.
These Shriram Transport NCDs come with a credit rating of CARE AA+ by CARE and AA/Stable by CRISIL for the secured NCDs while it is being rated as CARE AA by CARE and AA/Stable by CRISIL for the unsecured NCDs.
The lead managers to the issue are JM Financial and ICICI Securities and co-lead manager is RR Investors Capital and the Registrar is Integrated Enterprises.
The minimum investment for Shriram Transport NCD is Rs. 10,000 and the allotment will be on a first come first serve basis until the issue will be oversubscribed or till the desired subscription is reached over and above the over subscription. The annualized returns for these STFC NCDs is expected to be up to 11.25% depending upon the plan that was chosen. The minimum period to invest is at least 36 months while the maximum is 60 months.
Advantages:
- With the NCDs which will be listed in NSE means that the liquidy part is taken care of.
- No TDS on interest.
- Interest much higher than bank FDs.
- Relatively safer and assured returns compared to stock market.
- From a reputed brand.
There are various investment options available for you to choose depending upon your interest requirement and duration. The same can be found on the Shriram Transport FCD prospectus here. The interest rate will be either semi-annual, annual or cumulative.
Shriram Transport Finance Company when announced their FCDs last year, it was actually oversubscribed and the same can be expected this time. As this is relatively safer and lucrative offer to invest your money if you are not the type of person who are still skeptical about mutual funds and/or stock markets and would prefer fixed income investments. Sriram FCDs close on May 31, 2010, you will need to invest as early as possible as the allotments are done on a first come first serve basis and might even be closed earlier if their target is reached.
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