Public Issue of Secured

Redeemable Non-Convertible Debentures

Shriram Transport Finance Company Limited

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Brief Introduction of the Company:
»» The company was incorporated in the year 1979 and is
registered as a Deposit taking NBFC with Reserve Bank
of India under section 45IA of the Reserve Bank of India
Act, 1934.

»» They are a part of the “SHRIRAM” conglomerate which has

significant presence in financial services viz., commercial
vehicle f inancing business, consumer f inance, life and
general insurance, stock broking, chit funds and distribution
of f inancial products such as life and general insurance
products and units of mutual funds.

Issue Opens on »» STFC decided to finance the much neglected Small Truck
Owner. Shriram understood the power of ‘Aspiration’ much
07-Jan-2019 before marketing based on ‘Aspiration’ became fashionable.
Shriram started lending to the Small Truck Owner to buy
new trucks. But we found a mismatch between the Aspiration
and Ability. The Truck Operator was honest but the Equity
---------------------------------------------------
at his command was not sufficient to support the credit
levels required to buy a new truck.

Issue Closes on »» With a track record of about 37 years in this business, they
are among the leading organized finance provider for the

31-Jan-2019 commercial vehicle industry with a focus to provide various

credit facilities to STOs. They have also added passenger
commercial vehicles, multi-utility vehicles, three wheelers,
tractors and construction equipment to their portfolio, making
us a diversified, end to end provider of finance solutions
to the domestic road logistics industry. Besides financing
commercial vehicles (both new and pre-owned) they also
extend finance for tires, engine replacement and working
capital. They also provide ancillary services such as freight
bill discounting besides offering co-branded credit cards.

»» They have pan-India presence through their widespread

network of branches has helped in their overall growth over
the years. As on December 31, 2017 we had 1,121 branches, 930
rural centres and tie up over 500 private financiers across
the country. As on December 31, 2017 their total employee
strength was 22,967, including more than 14,497 product
executives and credit executives who are colloquially referred
to as their field force.

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Application Forms will be available on

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 Shriram Transport Finance Company Limited

Financial Summary
(as per consolidated statements):
»» They have demonstrated consistent growth in Net Profit After Tax (Rs. Millions)
their business and profitability. Their assets under
management have grown by a compounded annual
1 300 1 264
growth rate (CAGR) of 12.21% from Rs. 49,689 crores 1 257
1 238
in FY 2013 to Rs. 78,761 crores in FY 2017. Their total 1 250
income and profit after tax in FY 2017 are Rs. 10,831
1 200 1 178
crores and Rs. 1,257 crores respectively.
1 150
»» Today they have approximately 20-25% market share
in pre-owned and approximately 7-8% market share 1 100
in new truck financing, with more than 17,10,000 FY 14 FY 15 FY 16 FY 17
customers.

Issue Details:

Issuer/ Borrower Shriram Transport Finance Company Limited

Nature of Issue Public Issue of Secured Redeemable Non-Convertible Debentures

Issue Opening Date January 7, 2019

Issue Closing Date** January 31, 2019

Public Issue of secured, redeemable non-convertible debentures of face value of

₹ 1,000 each, for an amount of ₹ 200 Crores (Base Issue Size) with an option to
Issue Size
retain over-subscription up to ₹ 500 Crores aggregating up to Tranche 3 issue limit
of ₹ 700 Crorers

Face value ₹ 1,000 per NCD

Issue Price (in ₹) ₹ 1,000 per NCD

Minimum Application size and ₹ 10,000 (10 NCDs) collectively across all Series and in multiple of ₹ 1,000 (1 NCD)
in multiples of NCD thereafter thereafter across all Series

‘CRISIL AA+/Stable’ by CRISIL and ‘IND AA+: Outlook Stable’ by India Ratings and
Credit Rating
Research

The NCDs are proposed to be listed on BSE and NSE. The NCDs shall be listed
Listing
within six Working Days from the date of Tranche 3 Issue Closing Date.

Trading In dematerialised form only

Edelweiss Financial Services Limited, Axis Bank Limited, A.K. Capital Services
Lead Managers
Limited, JM Financial Limited and Trust Investment Advisors Private Limited

Registrar Integrated Registry Management Services Private Limited

Depositories NSDL & CDSL

Debenture Trustee Catalyst Trusteeship Limited

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 Shriram Transport Finance Company Limited

Mode of Submission of
Through ASBA only
Application Forms

Security and Asset Cover
The NCDs proposed to be issued in this Tranche 3 Issue will be secured by way of first ranking
pari passu charge, with prior permission of Debenture Trustee in this connection as provided
for in the Debenture Trust Deed, on the Company’s identified immovable property and first
ranking exclusive fixed charge on the Company’s identified receivables, both present and
future, for the purposes of maintaining ‘security cover’ Security for the purpose of this Tranche
3 Issue will be created in accordance with the terms of the Debenture Trust Deed. The Issuer
reserves the right to sell or otherwise deal with the receivables, both present and future, and
provided that security cover of one (1.0) time on the outstanding principal amount and interest
thereon, is maintained.

** This Tranche 3 Issue shall remain open for subscription on Working Days from 10 a.m. to 5 p.m. during the period indicated above,
except that this Tranche 3 Issue may close on such earlier date or extended date as may be decided by the Board of Directors of the
Company (“Board”) or the Debt Issuance Committee. In the event of an early closure or extension of this Tranche 3 Issue, the Company
shall ensure that notice of the same is provided to the prospective investors through an advertisement in a daily national newspaper with
wide circulation on or before such earlier or initial date of Issue closure. On the Tranche 3 Issue Closing Date, the Application Forms will be
accepted only between 10 a.m. and 3 p.m. (Indian Standard Time) and uploaded until 5 p.m. or such extended time as may be permitted
by the Stock Exchanges.

Investment Details:

Series I II III IV V VI VII

Interest Rate type Fixed Fixed Fixed Fixed Fixed Fixed Fixed

Frequency of Interest
Monthly Monthly Annually Annually Annually Cumulative Cumulative
Payment

Tenor 5 years 10 years 3 years 5 years 10 years 3 years 5 years

Minimum Application ₹ 10,000 (10 NCDs)

In Multiples of thereafter ₹ 1,000 (1 NCD)

Face Value/Issue Price ₹ 1,000 (1 NCD)

Coupon (%) for all Investor

9.12% 9.30% 9.40% 9.50% 9.70% NA NA
categories*

Effective Yield (per annum)

(Approx) for all Investor 9.50% 9.70% 9.39% 9.49% 9.69% 9.40% 9.50%
categories*

Redemption Amount 1,000/- 1,000/- 1,000/- 1,000/- 1,000/- 1,309.66/- 1,574.63/-

Redemption Date (Years

from the Deemed Date of 5 years 10 years 3 years 5 years 10 years 3 years 5 years
Allotment)

Mode of Interest Payment Through various options available

*The initial allottees under Category III and Category IV in the proposed Tranche 3 Issue who are Senior Citizens on the Deemed Date of Allotment shall be
eligible for an additional incentive of 0.25% p.a. provided the NCDs issued under the proposed Tranche 3 Issue are continued to be held by such investors
under Category III and Category IV on the relevant Record Date for the relevant Interest Payment date for Series I, Series II, Series III, Series IV and/or Series
V. Accordingly, the amount payable on redemption to such Senior Citizens for NCDs under series VI and Series VII is Rs. 1,318.67 and Rs.1,592.70 per NCD
respectively provided the NCDs issued under the proposed Tranche 3 Issue are continued to be held by such investors under Category III and Category IV on
the relevant Record Date for the relevant Redemption Payment date for Series VI and Series VII.

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 Shriram Transport Finance Company Limited

Who Can Apply?

* Public financial institutions, scheduled commercial banks, Indian multilateral and

bilateral development financial institution which are authorized to invest in the NCDs;
* Provident funds, pension funds with a minimum corpus of ₹ 2,500 lakhs, superannuation
funds and gratuity funds, which are authorized to invest in the NCDs;
* Mutual Funds registered with SEBI
* Venture Capital Funds/ Alternative Investment Fund registered with SEBI;
Category I * Insurance Companies registered with IRDA;
(Institutional Category) * State industrial development corporations;
10% * Insurance funds set up and managed by the army, navy, or air force of the Union of India;
* Insurance funds set up and managed by the Department of Posts, the Union of India;
* Systemically Important Non-Banking Financial Company, a nonbanking financial
company registered with the Reserve Bank of India and having a net-worth of more than
₹ 50,000 lakhs as per the audited financial statements;
* National Investment Fund set up by resolution no. F. No. 2/3/2005-DDII dated November
23, 2005 of the Government of India published in the Gazette of India;

* Companies within the meaning of section 2(20) of the Companies Act, 2013; statutory
bodies/ corporations and societies registered under the applicable laws in India and
authorised to invest in the NCDs;
* Co-operative banks and regional rural banks
* Public/private charitable/ religious trusts which are authorised to invest in the NCDs;
Category II
* Scientific and/or industrial research organisations, which are authorised to invest in the
(Non-Institutional
NCDs;
Category) 10%
* Partnership firms in the name of the partners;
* Limited liability partnerships formed and registered under the provisions of the Limited
Liability Partnership Act, 2008 (No. 6 of 2009);
* Association of Persons; and
* Any other incorporated and/ or unincorporated body of persons

Category III * Resident Indian individuals and Hindu Undivided Families through the Karta applying
(High Net-worth for an amount aggregating to above ₹ 10 lakhs across all series of NCDs in this Tranche 3
Individual) 40% Issue

Category IV * Resident Indian individuals and Hindu Undivided Families through the Karta applying
(Retail Individual for an amount aggregating up to and including ₹ 10 lakhs across all series of NCDs in this
Investors) 40% Tranche 3 Issue

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 Shriram Transport Finance Company Limited

Contact:

North: Ms. Sarita Singh, 052 2409 2000 Ext 108 (L), sarita.singh@karvy.com

Andhra Pradesh & Telangana: Mr. KTPS Prasad, 4467 7529, ktps@karvy.com

Karnataka: Mr. E Srinivasan, 98800 66215 (M), 080 3293 2151 (L), esrinivasan@karvy.com

West: Mr. Rahil Doshi, 96197 75225 (M), 022 2891 9912(L), Rahil.doshi@karvy.com

East: Mr. Sharat Agarwal, 98309 52332 (M), 033 2464 7232 (L), sharat@karvy.com

Kerala: Mr. Rathish Nair, 98955 31260, ratheesh.nair@karvy.com

Chennai (TN): Ms. Bhagyalakshmi D, 95660 97174, lakshmi.dhanasekar@karvy.com

Madurai (TN): Mr. Ajith Samuel J P, 95976 16250, ajith.samuel@karvy.com

Salem (TN): Mr. Hariharan V, 97916 11661, hari.haranv@karvy.com

Coimbatore (TN): Mr. Gowthaman, 99525 45473, gowthaman.01@karvy.com

Allotment on First Come First Serve Basis

Important Note
The Applications are to be submitted to the Members of the Syndicate and Trading Members on a timely manner so
that the details can be uploaded by the closure of banking hours (5 PM) on to the Stock Exchange platform.

Kindly note that uploading the bids into Electronic files of Stock Exchanges is Mandatory
and application is liable to be rejected otherwise.

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Please read the Prospectus of this issue carefully before Research Team
PF/NCD/29122018/01
investing in the same.
Ankit Choradia
Application forms will be available on
E-mail: ankit.choradia@karvy.com
www.karvyvalue.com Direct Ph: 040 3321 7132

Disclaimer
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The information and views presented in this report are prepared by Karvy Stock Broking Limited. The information contained herein is
based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness
thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments
discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions
based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While
acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Stock Broking
nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views
mentioned in this document.

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