INSUBCONTINENT EXCLUSIVE:
Mumbai: Non-banking finance companies (NBFC) Magma Fincorp, LT Finance and Shriram City Union are tapping retail investors to raise funds as
banks have tightened lending to the sector after the ILFS default crisis and investors became wary about investing in NBFCs.
Magma Fincorp
plans to raise up to Rs 500 crore by offering coupon at 10.25% to 10.75% for various tenors per annum
Shriram City Union is looking to raise up to Rs 750 crore at 9.55% to 9.75% per annum, while LT Finance has issued a second tranche of its
public offering to add Rs 500 crore with an option to retain oversubscription up to Rs 1000 crore at coupon rates between 8.7% to
ILFS default with their blended cost rising 0.75%-1%.
For Magma, incremental borrowing for the year would be Rs 5,000 crore to Rs 7,000
commercial vehicle segments
This is when SME and housing has been growing because of non-availability of funds from smaller NBFCs
Large housing finance companies like DHFL are going slow in disbursing loans.
For Shriram City Union, about 50-55% of their funds come from
