Shriram City Union Finance Limited Public Issue of Secured Redeemable Non-Convertible Debentures to open on April 5, 2019

Shriram City Union Finance Limited Public Issue of Secured Redeemable

Non-Convertible Debentures to open on April 5, 2019

• Secured, redeemable non-convertible debentures (“NCDs”) of a face value of Rs.1000 each
• The Tranche 1 issue includes a Base issue Size for an amount of Rs. 1,000 million(“Base Issue Size”) with an option to retain oversubscription up to Rs. 6,500million aggregating up to Rs.7,500million (“Tranche 1 Issue Limit”) which is within the Shelf Limit of  Rs. 30,000Million (“Shelf Limit”)
• The offer has been rated ‘CARE AA+ Stable’ (Double A Plus; Outlook: Stable) by CARE and ‘CRISIL AA/Stable’ (pronounced as CRISIL double A rating with Stable outlook) by CRISIL
• The Tranche 1Issue opens on April05, 2019 and Closes on May 3, 2019 with an option of early closure or extension.
• The NCDs offered through this Tranche 1 Prospectus are proposed to be listed on the BSE

 Chennai, April 4, 2019: Shriram City Union Finance Limited, a deposit-taking NBFC under Shriram group of companies (the “Shriram Group”), a prominent financial services conglomerate in India is coming out with a public issue of secured redeemable non-convertible debentures of face value of Rs. 1000 each (“NCDs”). The Tranche 1 Issue aggregates to Rs. 1,000million, with an option to retain over-subscription up to Rs. 6,500million, aggregating up to a total of Rs. 7,500million.  The Tranche 1Issue opens on April 05, 2019 and closes on May 3, 2019, with an option of early closure or extension.

Mr. R. Chandrasekar, Executive Director & Chief Financial Officer, Shriram City Union Finance Limited

The NCDs proposed to be issued under the Issue have been rated ‘CARE AA+ Stable’ (Double A Plus; Outlook: Stable) by CARE and ‘CRISIL AA/Stable’ (pronounced as CRISIL double A rating with Stable outlook) by CRISIL for an amount of upto ` 30,000 million vide their letters dated December 11, 2018 (and revalidated on February 14, 2019 and further revalidated on March 20, 2019) and December 6, 2018 (and revalidated on February 19, 2019 and further revalidated on March 19, 2019) respectively. The rating of the NCDs by CARE and CRISIL are considered to have a high degree of safety regarding timely servicing of financial obligations. Such instruments carry very low credit risk. The ratings provided by CARE and CRISIL may be suspended, withdrawn or revised at any time by the assigning rating agency and should be evaluated independently of any other rating.

(L – R): Mr. R. Duruvasan, Managing Director & Chief Executive Officer, Shriram City Union Finance Limited; Ms. Krithika Doraswamy Asst. Vice President, Shriram City Union Finance Limited

These NCDs, bearing a fixed rate of interest, are being offered under eight different series.  The terms of each series of NCDs, offered under Tranche 1 Issue are set out below: 

Minimum Application : Rs.10,000 (10 NCDs) across all series collectively

Face Value / Issue price of NCDs : Rs.1,000 (1 NCD) across all series

(L – R): Mr. R. Chandrasekar, Executive Director & Chief Financial Officer, Shriram City Union Finance Limited; Mr. R. Duruvasan, Managing Director & Chief Executive Officer, Shriram City Union Finance Limited; Ms. Krithika Doraswamy Asst. Vice President, Shriram City Union Finance Limited

The funds raised through this Tranche 1 Issue will be utilised for company’s various financing, lending, investments, repaying its existing liabilities or loans, towards its business operations, capital expenditure, working capital requirements and general corporate purposes, after meeting the expenditures of and related to the Issue and subject to applicable statutory/regulatory requirements.

The NCDs offered through this Tranche 1 Prospectus are proposed to be listed on the BSE. BSE is the Designated Stock Exchange for the Tranche 1 Issue.

(L – R): Mr. R. Chandrasekar, Executive Director & Chief Financial Officer, Shriram City Union Finance Limited; Mr. R. Duruvasan, Managing Director & Chief Executive Officer, Shriram City Union Finance Limited; Ms. Krithika Doraswamy Asst. Vice President, Shriram City Union Finance Limited

The Lead Managers to the Issue are A. K. Capital Services Limited and Edelweiss Financial Services Limited.

Catalyst Trusteeship Ltd. (formerly known as GDA Trusteeship Limited) is the Debenture Trustee and Integrated Registry Management Services Private Limited is the Registrar to the issue.

About Shriram City Union Finance Limited:

Shriram City Union Finance Limited is a deposit-taking NBFC with multiple product offerings, including small enterprise/ MSME financing, loans against gold, financing for two-wheelers, auto loans, personal loans, and housing finance loans. Shriram City Union Financeis a part of the Shriram group of companies (the “Shriram Group”), a prominent financial services conglomerate in India.

The Company also provides loans against gold, auto loans, personal loans and housing finance loans. Having commenced operations in 1986, the Company has established a pan-India presence, through  and remains committed to serving unbanked and underserved sections of its customer-base.

Disclaimer

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 of face value of Rs. 1,000 each (“NCDs”) and has filed a shelf prospectus dated March 27, 2019 (“Shelf Prospectus”) and Tranche 1 Prospectus dated March 27, 2019, (“Tranche 1 Prospectus”) (together, the “Prospectus”), with the Registrar of Companies, Tamil Nadu and the Securities and Exchange Board of India(“SEBI”) and BSE Limited(“BSE”). The Prospectus is available on the websites of SEBI at www.sebi.gov.in, BSE at www.bseindia.com, the Company at www.shriramcity.com and the Lead Managers i.e A K Capital Services Limited and Edelweiss Financial Services Limited at [●] and [●], respectively . 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 11 of the Shelf Prospectus. Investors are urged to take any decision to invest in the NCDs issued pursuant to the Shelf Prospectus and Tranche 1 Prospectus solely on the basis of the disclosures made therein.