Shriram Transport Finance Company Limited

Shriram Transport Finance Company Limited (STFC) was established in 1979 and has a long track record of over three decades in the commercial vehicle financing industry in India. The Company has been registered as a deposit-taking NBFC with the Reserve Bank of India (RBI) since 4 September 2000. STFC is a part of the Shriram group of companies, which has a strong presence in financial services in India, including commercial vehicle financing, consumer finance, life and general insurance, stock broking, chit funds and distribution of financial products, such as life and general insurance products and mutual fund products. The company has a widespread network of branches across India. It has 1545 branches across the country, including in most of the major commercial vehicle hubs. It is also building a strong presence in 838 rural centres with a view to increasing the market share in the pre-owned commercial vehicle market as on 31.03.2019. The Assets Under Management has grown from Rs 95,306.03 crores as of March 31, 2018 on a standalone basis to Rs 1,04,482.27 crores (comprising assets under financing activities of Rs 1,02,307.49 crores and loan assets securitised and assigned of Rs 2174.79 crores) as of March 31, 2019 on a standalone basis. The Net NPAs as a percentage of Net Loan Assets was 2.83% and 2.66% as of March 31, 2018, and March 31, 2017 respectively. The company offers coupon rates up to 9.12% - 9.70% depending on the tenures - 30 months, 42 months, 60 months and 84 months. The mode of interest payments which is either Monthly, Annually or cumulative as per the choice of investors. On financial performance front, for FY19, STFCL has posted turnover/net profits of Rs. 15,522.44 cr. / Rs. 2575.68 cr. On a consolidated basis, STFCL has posted total revenue/net profits of Rs. 10361.97 cr. / Rs. 1183.62 cr. (FY16), Rs. 10904.47 cr. / Rs. 1265.63 cr. (FY17) and Rs. 12339.56 cr. / Rs. 1556.75 cr. (FY18). These NCD issue is graded 'CRISIL AA+/Stable' by CRISIL, 'IND AA+: Outlook Stable' by India Ratings and Research and 'CARE AA+ / Stable' by CARE Ratings Limited. The rating of the NCDs by CRISIL, CARE and India Ratings and Research indicate that instruments with this rating are considered to have a high degree of safety regarding timely servicing of financial obligations and carry very low credit risk. So we give 'SUBSCRIBE' rating to this NCD.

• 1 Shriram Capital Limited