Shriram Transport Finance Company Limited raises Rs. 1,998.98 crores via QIP route

Shriram Transport Finance Company Limited ("STFC" or "Company"), has successfully raised Rs. 1,998.98 crores via a qualified institutions placement of equity shares.

The Company had launched its QIP on June 7, 2021 and received 6.3x oversubscription. The QIP was priced at Rs. 1,430 per share, representing a discount of 0.23% to the regulatorily determined floor price was Rs.1,433.32.

Several FIIs and DIIs participated in the QIP.

The Book Running Lead Managers (BRLMs) to the issue were ICICI Securities Limited, J.P. Morgan India Private Limited, Axis Capital Limited, Citigroup Global Markets India Private Limited and HSBC Securities and Capital Markets (India) Private Limited.

The board has also approved on 7th June,2021 preferential issue of Rs. 500 crores, equally split between equity shares and convertible warrants to the Promoter, Shriram Capital Limited at the issue price of Rs. 1,440 per security.

Mr. Umesh Revankar, Vice Chairman and Managing Director of Shriram Transport Finance Company, while describing the successful issuance stated "We are delighted by the response of and participation by the global and domestic investor community in STFC's QIP. We believe that the 6.3x oversubscription and successful closure without much discount is a testament to the value of our franchise and its attractive growth prospects in long-term. The QIP proceeds will augment the Company's long-term resources for funding requirements of business activities, financing future growth opportunities and general corporate purposes."

Shares of SHRIRAM TRANSPORT FINANCE CO.LTD. was last trading in BSE at Rs.1475.25 as compared to the previous close of Rs. 1470.15. The total number of shares traded during the day was 81733 in over 4282 trades.

The stock hit an intraday high of Rs. 1493 and intraday low of 1460. The net turnover during the day was Rs. 120763266.

Source : Equity Bulls

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