Shriram Asset Management Company Ltd approves fund raising through preferential issue

The Board of directors of Shriram Asset Management Company Ltd at its meeting held today has considered and approved, raising of funds aggregating up to INR 87,22,00,000 on preferential basis by way of creating, offering, issuing and allotting, in one or more tranches, up to 50,00,00,000 Compulsorily Convertible Preference Shares of face value of INR 1/- each, up to 18,800 Compulsorily Convertible Debentures of face value of INR 10,000/- each and up to 14,81,899 warrants of face value of INR 124.30/- each subject to the approval of shareholders.

In connection with the Proposed Preferential Issue, the Board has also approved, and the parties propose to execute an investment agreement among the Company, Shriram Credit Company Limited and Mission] Investments LLC (Shriram Credit Company Limited and Mission1 Investments LLC, hereinafter referred to as the Prospective Investors) (Investment Agreement), for recording the terms and conditions for the issue and allotment of the Subscription Securities to the Prospective Investors on preferential basis.

Subject to approval of the shareholders of the Company, the increase in the authorised capital of the Company from INR 70,00,00,000 (Indian Rupees Seventy Crores only) to INR 1,27,00,00,000 (Indian Rupees One Hundred Twenty Seven Crores only). The existing / authorised share capital of INR 70,00,00,000 (Indian Rupees Seventy Crores only) divided into 90,00,000 (Ninety Lakh) equity shares having the face value of INR 10/- (Indian Rupees Ten only) each and 61,00,000 (Sixty One Lakh) preference shares having the face value of INR 100/- (Indian Rupees One Hundred only) each to INR 1,27,00,00,000 (Indian Rupees One Hundred Twenty Seven Crores only) divided into 2,30,00,000 (Two Crore Thirty Lakh) equity shares having the face value of INR 10/- (Indian Rupees Ten only) each, 50,00,00,000 (Fifty Crore) compulsory convertible preference shares having the face value of INR 1/- (Indian Rupees One only) each and 54,00,000 (Fifty Four Lakh) redeemable non-convertible preference shares having the face value of INR 100/- (Indian Rupees One Hundred only) each and consequently amendment to Clause V of the Memorandum of Association of the Company as follows:

The Authorized Share Capital of the Company is 1,27,00,00,000 (Indian Rupees One Hundred Twenty Seven Crores only) divided into 2,30,00,000 (Two Crore Thirty Lakh) Equity Shares having the face value of INR 10/- (Indian Rupees Ten only) each, 50,00,00,000 (Fifty Crore) Compulsory Convertible Preference Shares having the face value of INR 1/- (Indian Rupees One only) each and 54,00,000 (Fifty Four Lakh) Redeemable Non-Convertible Preference Shares having the face value of INR 100/- (Indian Rupees One Hundred only) each.

Shares of SHRIRAM ASSET MANAGEMENT CO.LTD. was last trading in BSE at Rs. 99.85 as compared to the previous close of Rs. 95.10. The total number of shares traded during the day was 2236 in over 37 trades.

The stock hit an intraday high of Rs. 99.85 and intraday low of 96.00. The net turnover during the day was Rs. 221500.00.

Source : Equity Bulls

Keywords

ShriramAssetManagementCompany INE777G01012 FundRaising PreferentialIssue