Shriram City Union Finance Limited – NCD Issue Sept 2012

Shriram City Union Finance Limited – Issue Of Secured, Non Convertible debentures September 2012.

Shriram City Union Finance – Part of Shriram Group, started its operations in 1986.Business activities include vehicle financing incuding two,three, foue wheelers new,preowned or commercial,,Personal Loans,Small Business loans and loan against Gold.

Credit Rating – CARE AA & CRISIL AA-. Stable Rating.

Issue Size – NCD issue of Rs.250 Crore with an option to retain oversubscription of Rs. 250 crore ,total aggragating Rs. 500/- crore.

Issue Open Date – Sept 12, 2012.
Issue Close Date – Sept 26, 2012.
Issuance – Only in dmat mode.So interested investors need to have a demat account to invest in this issue.
Face Value – Rs.1000/-.
Min Application amount – Rs.10,000/-.

Interest Rates for Individuals:

Series	I	II	III	IV
Tenure	36 months	60 Months	36 Months	60 Months
Interest Payment Frequency	Annual	Annual	Cumulative Mode	Cumulative Mode
Coupon rate %	10.60	10.75	N.A	N.A
Additional Incentive %	0.90	1.00	NA	NA
Effective Rate Of Interest	11.50	11.75	11.50	11.75
Call / Put Options	NA	NA	NA	NA
Redemption Amount[Rs]	1000/-	1000/-	1386.20/-	1743.30/-

Allocation ratio:

Institutional Category – 10%.
Non-Institutional category – 10%.
Non-Reserved Individuals [Individuals applying for more than 5 lakh]- 40%.
Reserved Individual Category[Individuals applying for less than 5 lkah] – 40%.

Still there is confusion in the mind,whether additional incentive of 0.90% or 1% is available for investors investing more than 5 lakh or not i.e for non-reserved category individuals.

For previous few issues additional interest rate benefit was available for investors investing upto Rs. 5 lakh only.Confusion is because word is used as individual & non-individual.If any one have clarity in this regard,please let us know.