The first tranche of the NCD issue is likely to happen in the last week of July or first week of August. The funds will be used for various financing activities, including lending and investment, said the chairman.
Funds will also be used to repay existing loans and for business operations, including capital expenditure and working capital requirement, he told shareholders at the company’s 33rd annual general meeting.
Fair performance
Referring to last year’s performance, Mr Duggal said the company posted satisfactory performance despite tough economic situation. The year was tough for Indian economy characterised by deceleration in industrial growth, lower growth in agriculture sector, high interest rates and tight monetary policy.
All these factors led to successive increase in repo rates by the Reserve Bank of India, inflation, trade deficit and weak Indian rupee. There were also supply constraints due to restrictions in iron ore production, he said.
Mr Duggal said in the tough business environment and to face the future challenges, the company’s management has laid more focus on strengthening customer relationships and rural penetration for sustained performance.
For the year 2011-2012, the flagship company of the Shriram Group posted a net profit of Rs 1,257 crore on a revenue of Rs 5,894 crore. The company has 15,057 employees and 502 branches, he said.
On Thursday, the shares of STFC closed 1.14 per cent lower at Rs 565.25 on the BSE.