Leading hedge funds such as Blue Ridge Ltd Partnership and Tiger Global Management LLC along with Kampani Finance Ltd, a private equity arm of JM Finance Group, together had picked up 5.7% stake in the Chennai-based Shriram Transport Finance Company Ltd (STFC), a leading truck finance company, for a consideration of Rs 360 crore.
In addition to that, Shriram Holdings (Madras) Pvt Ltd, the promoter, has also picked up a little over 4% stake in the company for Rs 240 crore. Shriram Transport Finance Company, which has planned to issue three crore fresh shares on a preferential basis to foreign as well domestic investors, has issued nearly two crore shares to these four investors.
Post issue, the capital base of the company expanded to Rs 211 crore as against Rs 191 crore earlier, said R Sridhar, managing director, STFC. The company has called for an extra ordinary general meeting (EGM) on December 12, to seek the shareholders’ approval. Talking to FE, he said: “The funds would be utilised for expanding our business further as well as to maintain our capital adequacy ratio (CAR) at 14% and above. Since we are growing fast we need to maintain our CAR at the existing level.? The board also cleared issuance of 80 lakh warrants to Shriram Holdings at a price of Rs 30 a warrant conferring an option to the holder to subscribe to one equity share per warrant at an exercise price of Rs 300 per warrant.
The company scrip closed on BSE at Rs 278.20, down by 2.52% on Tuesday. The company?s assets have touched the mark of Rs 12500 crore as against the mark of Rs 2500 crore five year ago a growth of five times, Sridhar said.
