The public Issue of Secured Non-Convertible Debentures by Shriram Transport Finance Co Ltd.
Salient features of the issue
- The NCD issue is rated “AA+” by CARE and “AA (IND)” by Fitch. STFC will create appropriate security in favour of the Debenture Trustee for the NCD holders on the assets to ensure 100% asset cover for the NCDs.
- The NCDs bear an attractive coupon rate between 10.75 % and 11.25 %.
- There are five investment options, suiting the needs of different categories of investors.
- The NCD’S are proposed to be listed on NSE and hence will be available in Demat form only, which will facilitate trading of these debentures.
- In case of a resident debenture holder, TDS will not be deducted since the debentures will be listed on the NSE.
- In case of NRI debenture holder, under Section 195 of the I.T. Act, the company is required to deduct tax at source.
- Under section 2 (29A) of the I.T. Act, read with section 2 (42A) of the I.T. Act, a listed debenture is treated as a long term capital asset if the same is held for more than 12 months immediately preceding the date of its transfer.
Posts
