Shriram Transport Finance to buy back bonds worth Rs 450 cr

The decision was taken by the Banking and Finance Committee of the company at a meeting held on June 16, 2021, STFC said in a regulatory filing.

The committee, it said, identified and approved the purchase of its own unsecured, senior, rated, listed, redeemable, taxable non-convertible debentures (NCDs) issued on a private placement basis on January 22, 2019, up to the limit of Rs 450 crore, for the purpose of holding the same on its books.

The company said it has decided the fair price to buy the debentures at a yield of 8.75 per cent per annum, as per its buyback policy in respect of NCDs.

The committee has approved the documents, including the offer letters for the purchase of debentures, it added.

“The offer for the purchase of the debentures will be at the discretion of the company on a first come first serve basis up to the available limit of Rs 450 crore of the face value of debentures or until June 25, 2021, whichever is earlier,” it added.

Buyback of the debt securities shows the intent of a company to retire its debt, especially in a falling interest rate scenario.

Shares of STFC closed at Rs 1,433.60 apiece on BSE, down 1.16 per cent from its previous close.