<p>Asset financing NBFC Shriram Transport Finance Company (STFC) that has a revenue mix of 80 per cent and 20 per cent skewed in favour of financing pre-owned heavy commercial vehicles (HCVs) and light commercial vehicles (LCVs) is not perturbed by the slowdown in new HCV and LCV sales.<br /><br /></p>.<p>The Managing Director and CEO of the company, Umesh Revankar said, “We continue to focus on the pre-owned commercial vehicles segment and it is steadily growing, notwithstanding LCV sales are almost flat and HCVs have been declining,” he told reporters on the sidelines of launching the company's public issue of non convertible debenture (NCD) issue.<br /><br />The company announced issue of NCDs aggregating up to Rs 375 crore with an option to retain over-subscription up to Rs 375 crore, thus adding up to Rs 750 crore. The issue opens on July 16 and closes on July 29.<br /><br />The funds raised through this issue will be used for various financing activities including lending and investments, to repay existing loans and for business operations including capital expenditure and working capital requirements.<br /><br />Revankar said that the company may raise more funds in the second half of this fiscal, as it has the board's approval to raise up to Rs 2,000 crore.<br /><br />On the company's business philosophy, he said, “We consciously prefer not to go up the value chain, this has actually enabled us to spread and manage our risk well, and serve customers in a focussed manner.”<br /><br />STFC derives about 45 per cent of its revenues from the southern states, but is keen to expand more in the northern and eastern parts of the country in the coming years. “We want to grow in the North-Eastern States, Bihar and Jharkhand.”<br /><br />The company's net non-performing assets was 0.73 per cent and it had a provision coverage of 76 per cent as on March 31, 2013. Its assets under management stood at Rs 50,120 crore.<br /><br />It has plans to add about 60 branches this year to its existing 539 branches that serve about 9 lakh customers.</p>
<p>Asset financing NBFC Shriram Transport Finance Company (STFC) that has a revenue mix of 80 per cent and 20 per cent skewed in favour of financing pre-owned heavy commercial vehicles (HCVs) and light commercial vehicles (LCVs) is not perturbed by the slowdown in new HCV and LCV sales.<br /><br /></p>.<p>The Managing Director and CEO of the company, Umesh Revankar said, “We continue to focus on the pre-owned commercial vehicles segment and it is steadily growing, notwithstanding LCV sales are almost flat and HCVs have been declining,” he told reporters on the sidelines of launching the company's public issue of non convertible debenture (NCD) issue.<br /><br />The company announced issue of NCDs aggregating up to Rs 375 crore with an option to retain over-subscription up to Rs 375 crore, thus adding up to Rs 750 crore. The issue opens on July 16 and closes on July 29.<br /><br />The funds raised through this issue will be used for various financing activities including lending and investments, to repay existing loans and for business operations including capital expenditure and working capital requirements.<br /><br />Revankar said that the company may raise more funds in the second half of this fiscal, as it has the board's approval to raise up to Rs 2,000 crore.<br /><br />On the company's business philosophy, he said, “We consciously prefer not to go up the value chain, this has actually enabled us to spread and manage our risk well, and serve customers in a focussed manner.”<br /><br />STFC derives about 45 per cent of its revenues from the southern states, but is keen to expand more in the northern and eastern parts of the country in the coming years. “We want to grow in the North-Eastern States, Bihar and Jharkhand.”<br /><br />The company's net non-performing assets was 0.73 per cent and it had a provision coverage of 76 per cent as on March 31, 2013. Its assets under management stood at Rs 50,120 crore.<br /><br />It has plans to add about 60 branches this year to its existing 539 branches that serve about 9 lakh customers.</p>
