July 02, 2014

Shriram Transport Finance Company Ltd (STFC)

RETAIL RESEARCH
Secured NCD Issue (Taxable)

st

Summary: Shriram Transport Finance Company Ltd (STFC), one of the largest asset financing NBFCs in India, has come up with the 1 tranche of public issue of Secured Non
Convertible Debentures (NCDs) for an amount aggregating upto Rs. 500 crore with an option to retain oversubscription upto the Shelf Limit, i.e. upto Rs. 3,000 crore with the
face value of Rs. 1,000 each.
The issue is open for subscription from July 2, 2014 to July 22, 2014 (The Company has the option of closing the issue on an earlier date, once it receives the amount it has
targeted). The company will be paying an interest ranging between 9.85% and 11.50% p.a. on these bonds. For the Series I, Series II and series III, the company offers the
additional incentive of 1.15%, 1.25% and 1.35% respectively for individual NCD holders. Further, Senior Citizens (only First Allottees) shall be entitled to an additional yield at
the rate of 0.25% per annum in these all bonds.
The proposed NCDs issue has been rated CRISIL AA/Stable by CRISIL, CARE AA+ ' by CARE and IND AA+ by India Ratings and Research Private Limited for an amount of upto
Rs. 3,000 crore.
This is the Public Issue by the Company (STFC) of NCDs for an amount upto an aggregate amount of the Shelf Limit of Rs. 3,000 crore. The NCDs will be issued in one or more
tranches subject to the Shelf Limit.
Objects of the Issue: The funds raised through this Issue, after meeting the expenditures of and related to the Issue, will be used for the various financing activities including
lending and investments, subject to the restrictions contained in the Foreign Exchange Management (Borrowing and Lending in Rupee) Regulations, 2000, and other
applicable statutory and/or regulatory requirements, to repay the existing loans and business operations including for the companys capital expenditure and working capital
requirements.
Common Terms and Conditions of the NCDs:
Issuer
Issue
TrancheI Issue Size
Type of Instrument
Face Value and issue price (in Rs / NCD)
Minimum Application
In Multiples of
Nature of Instrument
Listing
BSE and NSE
Put/Call Option

Shriram Transport Finance Company Limited

Public Issue of Secured Redeemable NonConvertible Debentures of face value of Rs. 1,000 each, for an amount aggregating
upto Rs. 3,000 crore (Shelf Limit).
Issue of NCDs for an amount of Rs. 500 crore with an option to retain oversubscription upto the Shelf Limit, i.e. upto Rs. 3,000
crore
Secured Redeemable Non Convertible Debentures
1,000
Rs. 10,000/ (10 NCDs) (for all Series of NCDs, namely Series I, Series II, Series III, Series IV, Series V, Series VI, Series VII and
Series VIII either taken individually or collectively)
Rs. 1,000/ (1 NCD)
Secured
BSE and NSE
CRISIL AA/Stable by CRISIL, CARE AA+ ' by CARE and IND AA+ by India Ratings and Research Private Limited for an amount of
upto Rs. 3,000 crore
Not Applicable

Issue Details:
Series
Frequency of Interest Payment
Coupon (%) p.a for
Non Individuals
Additional Incentive on Coupon
for Individuals on Any Record
Date)
Coupon (%) p.a for Individuals
(Coupon Rate + Incentive rate)
Effective Yield (%) p.a on any
Record Date Non Individuals
Effective Yield (%) p.a on any
Record Date Individuals
Tenor (Months)
Redemption Amount (Rs / NCD)
for Non Individuals
Redemption Amount (Rs / NCD)
for Individuals

I
Annual

II
Annual

III
Annual

IV
Monthly

V
Monthly

VI
Cumulative

VII
Cumulative

VIII
Cumulative

9.85%

10.00%

10.15%

10.71%

10.94%

NA

NA

NA

1.15%

1.25%

1.35%

Nil

Nil

NA

NA

NA

11.00%

11.25%

11.50%

10.71%

10.94%

NA

NA

NA

9.85%

10.00%

10.15%

11.25%

11.50%

9.85%

10.00%

10.15%

11.00%

11.25%

11.50%

11.25%

11.50%

11.00%

11.25%

11.50%

Eighty four
months
Face Value
plus any
interest
Face Value
plus any
interest

Thirty six
months

Sixty months

Eighty four
months

1,325.90

1,610.93

1,968.44

1,368.02

1,704.62

2,143.79

Thirty six
months
Face Value
plus any
interest
Face Value
plus any
interest

Sixty months
Face Value
plus any
interest
Face Value
plus any
interest

Eighty four
months
Face Value
plus any
interest
Face Value
plus any
interest

Sixty months
Face Value
plus any
interest
Face Value
plus any
interest

Note: Senior Citizens (only First Allottees) shall be entitled to an additional yield at the rate of 0.25% per annum on Series I, II and III series. For series IV and V, Senior citizens (only First Allottee) will
get a coupon of 10.94% per annum and 11.17% per annum respectively payable monthly. For series VI, VII and VIII, Senior Citizens (only First Allottee) will be paid an aggregate amount of Rs.
1,377.29, Rs. 1,723.87 and Rs. 2,177.70 per NCD, respectively, on the Redemption Date.

RETAIL RESEARCH

All categories of persons who are individuals or natural persons (including Hindu Undivided Families acting through their Karta) including without limitation HNIs and Retail
Individual Investors who are eligible under applicable laws to hold the NCDs are collectively referred to as Individuals.
Earlier Issues: Investors can also look at the earlier issues of NCDs by the same issuer, which are listed and traded on the exchanges. The table below describes the traded
details of such NCDs.

Series

HSL ID

Date of
Allotment

Coupon
Rate(%)

Residual
Maturity

STFC N1
SRTRANN1NR
27Aug09
11.00%
0.16 Years
STFC N2
SRTRANN2NR
27Aug09
11.25%
0.16 Years
STFC N3
SRTRANN3NR
27Aug09
11.03%
0.16 Years
STFC N4
SRTRANN4NR
27Aug09
11.00%
0.16 Years
STFC N6
SRTRANN6NR
2Jun10
9.75%
0.92 Years
STFC N7
SRTRANN7NR
2Jun10
9.50%
0.92 Years
STFC N8
SRTRANN8NR
2Jun10
9.00%

STFC N9
SRTRANN9NR
2Jun10
10.25%
2.92 Years
STFC NA
SRTRANNANR
2Jun10
10.00%
2.92 Years
STFC NB
SRTRANNBNR
2Jun10
9.50%

STFC NC
SRTRANNCNR
2Jun10
10.50%
0.92 Years
STFC ND
SRTRANNDNR
2Jun10
10.25%
0.92 Years
STFC NE
SRTRANNENR
2Jun10
9.75%

STFC NF
SRTRANNFNR
2Jun10

2.42 Years
STFC NG
SRTRANNGNR
2Jun10

2.67 Years
STFC NH
SRTRANNHNR
2Jun10

2.92 Years
STFC NI
SRTRANNINR
2Jun10
11.00%
2.92 Years
STFC NJ
SRTRANNJNR
2Jun10
10.75%

STFC NK
SRTRANNKNR
2Jun10
10.25%

STFC NL
SRTRANNLNR
12Jul11
11.60%
2.03 Years
STFC NM
SRTRANNMNR
12Jul11
11.35%
2.03 Years
STFC NN
SRTRANNNNR
12Jul11
11.10%
2.03 Years
STFC NO
SRTRANNONR
12Jul11
11.35%
0.03 Years
STFC NP
SRTRANNPNR
12Jul11
11.10%
0.03 Years
STFC NQ
SRTRANNQNR
12Jul11
11.00%
0.03 Years
STFC NR Individual
SRTRANNRNR
10Aug12
11.15%
1.11 Years
STFC NS Individual
SRTRANNSNR
10Aug12
11.40%
3.11 Years
STFC NT Individual
SRTRANNTNR
10Aug12

1.11 Years
STFC NU Individual
SRTRANNUNR
10Aug12

3.11 Years
STFC NR Non Individual
SRTRANNRNR
10Aug12
10.25%
1.11 Years
STFC NS Non Individual
SRTRANNSNR
10Aug12
10.50%
3.11 Years
STFC NT Non Individual
SRTRANNTNR
10Aug12

1.11 Years
STFC NU Non Individual
SRTRANNUNR
10Aug12

3.11 Years
STFC NV Individual
SRTRANNVNR
1Aug13
10.90%
2.09 Years
STFC NW Individual
SRTRANNWNR
1Aug13
11.15%
4.09 Years
STFC NX Individual
SRTRANNXNR
1Aug13
10.63%
4.09 Years
STFC NY Individual
SRTRANNYNR
1Aug13

2.09 Years
STFC NZ Individual
SRTRANNZNR
1Aug13

4.09 Years
STFC NV Non individual
SRTRANNVNR
1Aug13
9.65%
2.09 Years
STFC NW Non individual
SRTRANNWNR
1Aug13
9.80%
4.09 Years
STFC NX Non individual
SRTRANNXNR
1Aug13
9.40%
4.09 Years
STFC NY Non individual
SRTRANNYNR
1Aug13

2.09 Years
STFC NZ Non individual
SRTRANNZNR
1Aug13

4.09 Years
STFC Y1 Individual
SRTRANY1NR
24Oct13
11.25%
2.32 Years
STFC Y2 Individual
SRTRANY2NR
24Oct13
11.50%
4.32 Years
STFC Y3 Individual
SRTRANY3NR
24Oct13
11.75%
6.32 Years
STFC Y4 Individual
SRTRANY4NR
24Oct13
11.25%
2.32 Years
STFC Y5 Individual
SRTRANY5NR
24Oct13
11.50%
4.32 Years
STFC Y6 Individual
SRTRANY6NR
24Oct13
11.75%
6.32 Years
STFC Y1 Non Individual
SRTRANY1NR
24Oct13
10.75%
2.32 Years
STFC Y2 Non Individual
SRTRANY2NR
24Oct13
10.75%
4.32 Years
STFC Y3 Non Individual
SRTRANY3NR
24Oct13
10.75%
6.32 Years
STFC Y4 Non Individual
SRTRANY4NR
24Oct13
10.75%
2.32 Years
STFC Y5 Non Individual
SRTRANY5NR
24Oct13
10.75%
4.32 Years
STFC Y6 Non Individual
SRTRANY6NR
24Oct13
10.75%
6.32 Years
Note: Price as on June 30, 2014. Daily Average Volume is calculated for last one month period.

RETAIL RESEARCH

Coupon
payment
frequency
HalfYearly
Yearly
Cumulative
Yearly
Yearly
Yearly
Yearly
HalfYearly
HalfYearly
HalfYearly
Yearly
Yearly
Yearly
Cumulative
Cumulative
Cumulative
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Yearly
Cumulative
Cumulative
Yearly
Yearly
Cumulative
Cumulative
Yearly
Yearly
Monthly
Cumulative
Cumulative
Yearly
Yearly
Monthly
Cumulative
Cumulative
Yearly
Yearly
Yearly
Cumulative
Cumulative
Cumulative
Yearly
Yearly
Yearly
Cumulative
Cumulative
Cumulative

Tenor to
Call/Put
(Yrs)

0.92 Yrs
0.92 Yrs

1.03 Yrs
1.03 Yrs
1.03 Yrs

YTC (%)

14.92%
12.10%

11.45%
7.42%
14.21%

Last
Trade
Price (%)
210
203.5
1690
1024
1005.7
NA
NA
991
NA
NA
203
195
NA
1536.31
1463.7
NA
1028
NA
NA
1030.05
1066
NA
1020.1
NA
1016
1010.1
1012
1210
1193.01
1010.1
1012
1210
1193.01
987.35
994.04
979
1062
1035.15
987.35
994.04
979
1062
1035.15
1008
1001
1022.2
1045
1079.99
1075
1008
1001
1022.2
1045
1079.99
1075

YTM (%)
NA
NA
12.92%
13.17%
11.94%
NA
NA
12.02%
NA
NA
11.73%
NA
NA
11.53%
12.43%
NA
10.96%
NA
NA
11.53%
NA
NA
NA
NA
NA
12.96%
12.06%
12.10%
12.43%
11.81%
11.04%
NA
10.96%
13.17%
12.35%
11.90%
12.76%
13.13%
11.69%
10.88%
10.52%
10.92%
11.41%
12.26%
12.35%
11.90%
12.67%
11.45%
11.81%
11.73%
11.53%
10.84%
12.02%
10.60%
10.72%

Daily
Average
Volume
163
68
490
13
3
NA
NA
104
NA
NA
978
10
NA
213
79
NA
10
NA
NA
472
47
NA
45
NA
15
91
179
48
117
91
179
48
117
200
611
254
73
56
200
611
254
73
56
48
53
73
10
9
70
48
53
73
10
9
70

Who can apply?

The following categories of persons are eligible to apply in the TrancheI Issue:
Category I Institutional Investor:

Resident public financial institutions as specified in Section 2 (72) of the Companies Act, 2013 authorized to invest in the NCDs; Statutory corporations including
State Industrial Development Corporations, commercial banks, cooperative banks and regional rural banks incorporated in India and authorized to invest in the
NCDs;
Indian Provident funds with a minimum corpus of Rs. 2,500 lacs, pension funds with a minimum corpus of Rs. 2,500 lacs, superannuation funds and gratuity funds,
authorized to invest in the NCDs;
Indian alternative investment funds registered with SEBI;
Venture Capital Funds;
Indian insurance companies registered with the IRDA;
Indian Mutual Funds registered with SEBI;
National Investment Fund set up pursuant to the resolution F. No. 2/3/2005DDII dated November 23, 2005 by the Government of India; and
Insurance funds set up and managed by the Indian army, navy or the air force of the Union of India or by the Department of Posts, India

Category II NonInstitutional Investor:

Companies, bodies corporate and societies, registered under the applicable laws in India, and authorized to invest in the NCDs;
Educational institutions and associations of persons and/or bodies established pursuant to or registered under any central or state statutory enactment; which are
authorized to invest in the NCDs;
Trusts settled under the Indian Trusts Act, 1882, public/private charitable/religious trusts settled and/or registered in India under applicable laws, which are
authorized to invest in the NCDs;
Resident Indian scientific and/or industrial research organizations, authorized to invest in the NCDs;
Partnership firms formed under applicable laws in India in the name of the partners, authorized to invest in the NCDs; and
Limited Liability Partnerships formed and registered under the provisions of the Limited Liability Partnership Act, 2008 (No. 6 of 2009), authorized to invest in the
NCDs.

Category III High Networth Individuals:

Resident Indian individuals who apply for NCDs aggregating to a value more than Rs. 5 lacs, across all Series of NCDs; and
Hindu Undivided Families through the Karta who apply for NCDs aggregating to a value more than Rs. 5 lacs, across all Series of NCDs.

Category IV Retail Individual Investors:

Resident Indian individuals who apply for NCDs aggregating to a value not more than Rs. 5 lacs, across all Series of NCDs; and
Hindu Undivided Families through the Karta who apply for NCDs aggregating to a value not more than Rs. 5 lacs, across all Series of NCDs.

Who are not eligible to apply for NCDs?

Minors without a guardian name;

Foreign nationals interalia including any NRIs who are (i) based in the USA, and/or, (ii) domiciled in the USA, and/or, (iii) residents/citizens of the USA, and/or, (iv)
subject to any taxation laws of the USA;
Persons resident outside India;
Foreign Institutional Investors;
Foreign Portfolio Investors;
Qualified Foreign Investors;
Overseas Corporate Bodies; and
Persons ineligible to contract under applicable statutory/regulatory requirements

Basis of Allotment:
Allotments in the first instance: (available for allotment on first come first serve basis)
Particulars

Institutional Category

Non Institutional Category

HNI Category

Retail Individual Category

Size in %

10% of the Issue Size

10% of the Issue Size

30% of the Issue Size

50% of the Issue Size

RETAIL RESEARCH

Credit Rating:
The NCDs proposed to be issued under this Issue have been rated CRISIL AA/Stable by CRISIL for an amount of upto Rs 3,00,000 lacs vide its letter dated June 5, 2014, CARE
AA+ ' by CARE for an amount of upto Rs 3,00,000 lacs vide its letter dated June 5, 2014 and IND AA+ by India Ratings and Research Private Limited for an amount of upto Rs
3,00,000 lacs.
The rating of the NCDs by CRISIL indicates high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk. The rating of the NCDs by
CARE indicates high degree of safety regarding timely servicing of financial obligations and carrying very low credit risk. The rating of the NCDs by India rating indicates high
degree of safety regarding timely servicing of financial obligations and carrying very low credit risk.
Security:
The principal amount of the NCDs to be issued in terms of this TrancheI Prospectus with all interest due on the NCDs shall be secured by way of first charge in favour of the
Debenture Trustee on an identified immovable property and specified future receivables of the Company as may be decided mutually by the Company and the Debenture
Trustee. The Company will create appropriate security in favour of the Debenture Trustee for the NCD Holders on the assets adequate to ensure 100% asset cover for the
NCDs along with the interest due thereon, which shall be free from any encumbrances.
Liquidity and Exit Options:
Secondary market exits Listing on the NSE and BSE to provide tradability.
Interest on Application Money:
On Allotment 9.00% p.a.
On Refund 4.00 % p.a.
Loan against NCDs:
STFC, at its sole discretion, subject to applicable statutory and/or regulatory requirements, may consider granting of a loan facility to the holders of NCDs against the security
of such NCDs.
Company Background:
STFC is the flagship company of the Chennaibased Shriram Group and was founded by Mr R Thyagarajan, Mr T. Jayaraman and Mr A. V. S. Raja. It is classified as a deposit
taking Asset Financing NBFC. The company was incorporated in 1979, with an objective to provide hire purchase and lease finance for the medium and heavy commercial
vehicles to individual truck operators. It is the largest asset financing NBFC in India, concentrated mainly in the preowned vehicle financing business. STFC has two wholly
owned subsidiaries, namely, Shriram Equipment Finance Company Limited and Shriram Automall India ltd. STFC has a pan India presence with a network of 654 branches and
629 rural centers at the end of March 2014. The total employee strength as on March 31, 2014 stands at 18,122 which include 11,209 field officers.
STFC is one of the largest asset financing NBFC in India with RS.56,519 crore of assets under management (AUM) (on a consolidated basis) as on March 31, 2014. Over its 30
years of experience in CV financing, it has garnered a market share of 25% in preowned CV financing. STFC is in the business of financing smalI/ medium truck operators who
generally require loans with smaller ticket size. Majority of these operators have requirement for preowned vehicles, due to which the loan portfolio of the company is
skewed towards financing preowned CV. Over its 30 years of operations, STFC has developed a strong relationship with its I customers and major part of its lending is being
done through 'reference based' model.
During FY14, interest income from onbalance sheet portfolio increased by 35%, with securitisation income declining by 27%. The decline in securitisation income was
primarily due to changes in the regulatory environme8t for securitisation transactions, which resulted in STFC securitizing relatively lower yielding assets from its total loan
portfolio. The yields on STFC's loan portfolio increased with an increase in the proportion of Used CVs in FY14. However, Net Interest Margin (NIM) (including securitization
income) declined to 5.56% in FY14 (6.13% in FY13) on aCC0unt of higher cost of borrowings. Operating costs have increased by 19%, though, STFC has managed to maintain
its operating costs / average assets at 1.6% in FY14 (1.5% in FY13). Economic slowdown over the past few years has lead to an increase in delinquencies. Higher credit costs
and decline in NIM have resulted in STFC's Return on Total Assets (ROTA) declining to 2.03% in FY14 (2.44% in FY13). However, STFC's profitability remains comfortable as
compared to other' players in the industry.
STFC has historically maintained a comfortable asset quality and over the years it has built strong credit appraisal and collection' skills in the small truck operator segment.
The relationshipbased model followed by the company, which lays more emphasis on the relationship with each of its customers has helped the company to maintain lower
delinquencies. Over the past 2 years, STFC saw rise in slippages due to the overall economic slowdown. On a consolidated basis, the Gross NPA ratio increased from 3.10% as
on March 31, 2013 to 3.75% as on March 31, 2014. However, STFC continues to maintain a healthy provision cover, with a ratio of 79% as on March 31, 2014.
STFC is currently supported by strong institutional investors who have the financial strength to support STFC's capital needs. STFC has maintained capital adequacy above the
regulatory minimum of 15% for deposit taking NBFCs. On a standalone basis, STFC reported CAR of 23.37% as on March 31, 2014 as compared to 20.74% as on March 31,
2013 (Source: CARE).

RETAIL RESEARCH

Key Strengths of the company:

One of the largest asset financing NBFC in India

Access to a range of cost effective funding sources.
Unique business model and a track record of strong financial performance.
Strong brand name.
Extensive experience and expertise in credit appraisal and collection processes.

Experienced senior management team.

Strategies of the company:

To expand operations further by growing STFCs branch network and increasing partnership and cofinancing arrangements with private financiers.
To continue to develop Automall business through whollyowned subsidiary Shriram Automall India Limited.
To consolidate and expand construction and equipment finance business through whollyowned subsidiary, Shriram Equipment Finance Company Limited.
To consolidate its product portfolio.
To continue to Implement advanced processes and systems.

Risks and Concerns:

STFCs financial performance is highly sensitive to interest rate volatility.

Business of STFC requires raising substantial capital by the way of borrowing, and any disruption in funding sources would have a material adverse effect on its
liquidity, financial condition and/or cash flows.
If STFC is unable to manage the level of NPAs in its loan assets, its financial position, results of operations and cash flows may suffer.
STFCs business is focused on commercial vehicle finance for new and preowned commercial vehicles and any adverse developments in this sector would
adversely affect its results of operations.
High levels of customer defaults could adversely affect STFCs business, financial condition, results of operations and/or cash flows.
Significant indebtedness and the conditions and restrictions imposed by STFCs financing arrangements could restrict its ability to conduct business and operations
in the manner it desire.
STFC face increasing competition in its business which may result in declining margins if it is unable to compete effectively.
STFC may not be able to successfully diversify its product portfolio.
Loan portfolio may no longer continue to be classified as priority sector advances by the RBI.
STFC may experience difficulties in expanding its business into new regions and markets in India.
Any downgrade of STFCs credit ratings would increase borrowing costs and constrain its access to capital and lending markets and, as a result, would negatively
affect its net interest margin and its business.
A decline in capital adequacy ratio could restrict STFCs future business growth.
As part of STFCs business strategy it assign or securitize a substantial portion of its loan assets to banks and other institutions. Any deterioration in the
performance of any pool of receivables assigned or securitized to banks and other institutions may adversely impact its financial performance and/or cash flows.
STFC has certain contingent liabilities, which may adversely affect its financial condition.
Inaccurate appraisal of credit may adversely impact STFCs business.

Consolidated Financials:
Particulars
Networth
Total Debt
Net Fixed Assets
NonCurrent Assets
Cash and Cash Equivalents
Current Investments
Current Assets
Current Liabilities
Assets Under Management
Off Balance Sheet Assets
Interest Income
Interest Expense
Provisioning & Writeoffs
PAT

RETAIL RESEARCH

Rs in Lakh

Financial Year ended

March 31, 2014
846,652.97
3,863,047.12
15,483.09
2,467,225.37
711,843.68
203,746.33
2,765,013.28
1,755,902.63
5,725,278.44
1,654,279.63
795,374.57
390,542.49
121,320.86
135,793.73

Financial Year ended

March 31, 2013
730,250.60
3,338,625.14
7,226.37
2,467,225.37
635,172.69
297,659.63
2,519,241.36
1,743,003.55
5,316,104.17
1,815,188.24
677,832.34
282,965.15
87,223.96
146,342.79

NPAs and Capital Adequacy Ratio:

Particulars
Gross NPA (Rs in lacs)
Net NPA (Rs in lacs)
Total Loan Assets (Rs in lacs)
Net Loan Assets(Rs in lacs)
% of Gross NPA to Total Loan Assets
% of Net NPA to Net Loan Assets
Tier I Capital Adequacy Ratio (%)
Tier II Capital Adequacy Ratio (%)

Rs in Lakh

As at and for the financial year ended

March 31, 2014
145,050.35
30,291.24
3,729,159.81
3,614,400.70
3.89%
0.84%
17.69%
5.68%

As at and for the financial year ended

March 31, 2013
98,204.53
18,431.98
3,196,798.98
3,117,026.43
3.07%
0.59%
16.70%
4.04%

As at and for the financial year ended

March 31, 2012
69,378.60
9,772.12
2,208,048.80
2,148,442.32
3.14%
0.45%
17.26%
5.01%

RETAIL RESEARCH Fax: (022) 30753435 Corporate Office, HDFC Securities Limited, I Think Techno Campus, Bulding B, Alpha, Office Floor 8, Near Kanjurmarg Station Opp. Crompton Greaves,
Kanjurmarg (East), Mumbai 400 042 Fax: (022) 30753435 Website: www.hdfcsec.com

Disclaimer: This document has been prepared by HDFC Securities Limited and is meant for sole use by the recipient and not for circulation. This document is not to be reported or copied or made available to
others. It should not be considered to be taken as an offer to sell or a solicitation to buy any security. The information contained herein is from sources believed reliable. We do not represent that it is accurate or
complete and it should not be relied upon as such. We may have from time to time positions or options on, and buy and sell securities referred to herein. We may from time to time solicit from, or perform
investment banking, or other services for, any company mentioned in this document. This report is intended for Non-institutional Clients only.
Disclaimer: HDFC Bank (a shareholder in HDFC Securities Ltd) is associated with this issue in the capacity of one of the Bankers to the issue and will earn fees for its services. This report is prepared in the
normal course, solely upon information generally available to the public. No representation is made that it is accurate or complete notwithstanding that HDFC Bank is acting for Shriram Transport Finance Ltd. This
report is not issued with the authority of Shriram Transport Finance Ltd. Readers of this report are advised to take an informed decision on the issue after independent verification and analysis.
Disclaimer: HDFC Securities Ltd. is one of the lead brokers to this issue. This report is prepared in the normal course, solely upon information generally available to the public. No representation is made that it is
accurate or complete notwithstanding that HDFC Securities Ltd. is acting for Shriram Transport Finance Ltd. This report is not issued with the authority of Shriram Transport Finance Ltd. Readers of this report are
advised to take an informed decision on the issue after independent verification and analysis.

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