Public issue of AA rated "Shriram City Union Finance Ltd" NCDs 11.75% p.a

I am pleased to share an opportunity to invest in the Public Issue of Non-Convertible Debentures (NCDs) by Shriram City Union Finance Ltd. The bonds carry additional coupon rates for individual applicants and have been rated ‘AA’ by CARE and ‘AA-’ by CRISIL. Instruments with these ratings carry high degree of safety regarding timely servicing of financial obligations and carry low credit risk. The issue opens on Sep 12, 2012 and closes on Sep 26, 2012 but the allotment will be on “first come first serve”basis. Please find the details below:

Features of the Issue:

Options	I	II	III	IV
Frequency of Interest Payment	Annual	Annual	Cumulative	Cumulative
Face Value or Issue Price / NCD	1000	1000	1000	1000
Coupon Rate (%)	11.50%	11.75%	NA	NA
Tenor	3 Yrs	5 Yrs	3 Yrs	5 Yrs
Redemption Value per Rs. 1000	1000	1000	1386.20	1743.20

Special Features:

·         Retail applicants can apply in Physical mode as well as Demat mode.

·         Rated ‘AA’ by CARE & ‘AA-’ by CRISIL.

Company Profile:

Shriram City Union Finance was established in 1986 and is part of the three decade old, Chennai based Shriram Group. As a deposit accepting NBFC registered with RBI, Shriram City is today India’s premier financial services company, specializing in retail finance. The company has a comprehensive range of offerings comprising financing for two wheelers, three wheelers, four wheeler finance, personal finance, small business loans and loan against gold. Shriram City is the only NBFC offering a wide product range under one roof. With over 1000 business outlets across the country, Shriram City enjoys a high credit rating as well as listing on BSE & NSE.

Shriram City is the retail finance vehicle of the Shriram group and benefits from access to the group’s established branch infrastructure, customer base, management, systems and processes, and investor base. The Shriram group has been in the financing business for over three decades, with a strong market position in commercial vehicle finance, retail finance, and chit fund businesses. The group’s brand image in the retail investor segment enables Shriram City to source adequate retail funding to meet its growth requirements.

Financial Highlights:

For FY2012, Shriram City reported a Total Income of Rs.2,056 Cr with Net Profits of Rs.343 Cr. Over FY2007-12, the company’s earnings (EPS) has demonstrated an impressive annualised growth rate (CAGR) of 33%. The Assets Under Management (AUM) rose nearly 68% from Rs.7,998 Cr in FY2011 to Rs.13,431 Cr in FY2012. The growth has been without any compromise on the asset quality. The company also reported a Capital Adequacy Ratio (CAR) of 17.40%  and Net Non-Performing Assets (NPAs) of just 0.38% in FY12.

This issue is opening on 12th Sep, 2012 & allotment will be on “First Come First Serve” basis.

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