Shriram Transport Finance Company raises Rs 2000 cr via QIP, DETAILS HERE

Shriram Transport Finance share price: Shriram Transport Finance Company raises Rs 2000 cr via QIP. Board also approves Preferential Issue to Shriram Capital (Promoter) of Rs.500 cr. Shriram Transport Finance Limited (STFC) has successfully raised Rs. 1,998.98 cr 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 1430 per share, representing a discount of 0.23% to the SEBI floor price of Rs.1433.32. 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.

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The board has also approved on 7th June, 2021 a 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 1440 per security.

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.”

About Shriram Transport Finance Company Limited:

STFC is the part of the Shriram group which has strong presence in financial services in India, including Consumer Finance, Life Insurance, General Insurance, Stock Broking and Distribution of financial products businesses. Established in 1979, STFC has a long track record of over three decades in the commercial vehicle financing industry in India. STFC is one of the leading non-banking finance companies classified as an Investment and Credit Company in the organized sector in India that cater to first-time buyers and small road transport operators for financing pre-owned commercial vehicles. It offers financial services to commercial vehicle operators, thereby providing comprehensive financing solutions to the road logistics industry in India. It has pan-India presence with 1,817 branch offices, as of March 31, 2021, and manages assets of over Rs. 1,17,200 crores and has a customer base exceeding 21 lakh. , It also provides new CV financing besides other products like accidental repair loans, tyre loans and working capital finance, etc. For more information please visit https://www.stfc.in/