Shriram Transport Finance Company Ltd (STFCL) will not look to raise any equity capital at least for the next three years, its Managing Director & Chief Executive Officer Umesh Revankar has said.

This retail asset finance company is currently in the market with a non-convertible debenture issue to mobilise about ₹1,500 crore in the current tranche.

“We are very comfortable on the equity capital front. We are focused on NCDs as there is good scope for us to raise debt,” Revankar told BusinessLine when asked as to why the company was tapping the market with a debt offering. The company may also come up with another NCD issue this fiscal to mobilise ₹1,500 crore (it had filed a shelf prospectus for ₹3,000 crore), he said.

Revankar expressed confidence that the second half of the current fiscal would be better for the company in terms of bottomline performance.

This optimism is on the hope that the new Modi-led Government would soon sort out mining and other infrastructure-related policy bottlenecks.

Increase in mining activities would add to the demand for commercial vehicles in the country, he pointed out.

Shriram Transport Finance is primarily focused on financing pre-owned commercial vehicles.

Revankar also said Shriram Transport Finance has no immediate plans to take its equipment finance unit public. It has a network of 654 branches across the country and presence in 629 rural centres as of March 31 this year.

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