Shriram Transport Fin raises Rs 2,000 cr via QIP

The QIP proceeds will increase the corporate’s long-term assets for funding necessities of enterprise actions, financing future progress alternatives and common company functions.”

Shriram Transport Finance Company (STFC) has raised Rs 1,998.98 crore by way of certified establishments placement (QIP) of fairness shares. The corporate, which had launched its QIP on June 7, 2021, acquired 6.3x oversubscription.

The QIP was priced at Rs 1,430 per share, representing a reduction of 0.23% to the Sebi flooring worth of Rs 1,433.32. A number of FIIs and DIIs participated within the QIP, in keeping with a press launch. The e book operating lead managers to the problem had been ICICI Securities, JP Morgan India, Axis Capital, Citigroup International Markets and HSBC Securities and Capital Markets (India).

The board had additionally authorised on June 7 a preferential concern of Rs 500 crore, equally cut up between fairness shares and convertible warrants to the promoter, Shriram Capital, on the concern worth of Rs 1,440 per safety.

Umesh Revankar, vice chairman and MD of Shriram Transport Finance Firm, mentioned: “We’re delighted by the response of and participation by the worldwide and home investor communities in STFC’s QIP. We consider that the 6.3x oversubscription and profitable closure with out a lot low cost is a testomony to the worth of our franchise and its engaging progress prospects in long-term. The QIP proceeds will increase the corporate’s long-term assets for funding necessities of enterprise actions, financing future progress alternatives and common company functions.”

STFC is a part of Chennai-based enterprise conglomerate Shriram Group which has sturdy presence in monetary companies, together with shopper finance, life insurance coverage, common insurance coverage, inventory broking and distribution of economic merchandise companies.