Shriram Transport Fin raises Rs 2,000 cr via QIP

By: |
June 15, 2021 3:01 AM

The book running lead managers to the issue were ICICI Securities, JP Morgan India, Axis Capital, Citigroup Global Markets and HSBC Securities and Capital Markets (India).

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.”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.”

Shriram Transport Finance Company (STFC) has raised Rs 1,998.98 crore through qualified institutions placement (QIP) of equity shares. The company, which had launched its QIP on June 7, 2021, received 6.3x oversubscription.

The QIP was priced at Rs 1,430 per share, representing a discount of 0.23% to the Sebi floor price of Rs 1,433.32. Several FIIs and DIIs participated in the QIP, according to a press release. The book running lead managers to the issue were ICICI Securities, JP Morgan India, Axis Capital, Citigroup Global Markets and HSBC Securities and Capital Markets (India).

The board had also approved on June 7 a preferential issue of Rs 500 crore, equally split between equity shares and convertible warrants to the promoter, Shriram Capital, at the issue price of Rs 1,440 per security.

Umesh Revankar, vice chairman and MD of Shriram Transport Finance Company, said: “We are delighted by the response of and participation by the global and domestic investor communities 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.”

STFC is part of Chennai-based business conglomerate Shriram Group which has strong presence in financial services, including consumer finance, life insurance, general insurance, stock broking and distribution of financial products businesses.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1HP Pavilion Laptop 13 (BB0075TU) review: Classy looks, reliable performance at an affordable price
2Indel Money to expand presence
3SC stays SAT order upholding Sebi fine on Rana Kapoor, 2 companies