Shares of Shriram Finance Ltd. hit record high on Thursday after its board approved to raise Rs 1,000 crore through private placement of non-convertible debentures maturing in 10 years. The issue size consists of Rs 1,000 crore NCDs coupled with a Rs 500 crore greenshoe option, the company said in an exchange filing on Wednesday.
The face value and issue price are Rs 1 lakh. The NCDs are senior, secured, rated, redeemable, and taxable with a fixed coupon rate of 9.10% per annum.
The date of maturity of these NCDs is Sept. 11, 2034, according to the exchange filing. The company will pay interest every year on Sept. 11.
Shriram Finance will use the proceeds for lending to grow its asset book, financing vehicles, and refinancing existing debt, according to the company's exchange filing.
Shares of Shriram Finance rose as much as 2.56% to Rs 3,363.95, the highest level since its listing on Aug. 16, 2019. It was trading 1.68% higher at Rs 3,335.00 as of 11:32 a.m., compared to 0.24% advance in the NSE Nifty 50 index.
The stock gained 74.50% in 12 months and 62.78% on year to date basis. Total traded volume so far in the day stood at 1.3 times its 30-day average. The relative strength index was at 68.58.
Out of 40 analysts tracking the company, 39 maintain a 'buy' rating and one suggests a 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 2.0%
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