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Shriram Finance eyes construction equipment financing

india Updated: Jul 22, 2009 17:19 IST

Non-banking finance company Shriram Transport Finance is planning to foray into construction equipment financing, a company official said in Kolkata on Wednesday.

"We are planning to get into the business of financing pre-owned construction equipment where we feel there is sufficient space for us," Shriram Transport executive director Umesh Revankar said at a press meet. Revankar said the company planned to enter the segment this fiscal.

Shriram Transport, the flagship company of the Shriram group, is predominantly into financing second-hand commercial vehicles.

Revankar said the demand for finance was comfortable, and that his company expected a 25 per cent disbursal growth this fiscal over last year's Rs.11,000 crore disbursal.

Shriram Transport is also planning to enter the debt capital market July 27 with a public issue of non-convertible debentures (NCDs) aggregating up to Rs 500 crore, with an option to retain over-subscription of up to Rs 500 crore for issuance of additional NCDs.

Apart from this, Revankar said, the company planned to raise funds through institutional borrowing, though he did not specify the amount.

"Our fund raising programme is going as per the plan," he added.