Shriram Transport Finance raises nearly Rs 2,000 crore through QIP

Non-banking finance company Shriram Transport Finance (STFC) on Monday said it has raised Rs 1,998.98 crore through its qualified institutional placement (QIP) issue.

The issue, which was launched on June 7, 2021, received 6.3 times oversubscription, a company release said.

Several foreign institutional investors (FIIs) and domestic institutional investors (DIIs) participated in the QIP issue.

It was priced at Rs 1,430 per share, representing a discount of 0.23 per cent to the SEBI floor price of Rs 1,433.32.

The company said its board also approved on June 7, 2021 a preferential issue of Rs 500 crore, equally split between equity shares and convertible warrants to the promoter, Shriram Capital Limited, at the issue price of Rs 1,440 per security.

"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 company's Vice Chairman and Managing Director Umesh Revankar said in the release.

The book running lead managers (BRLMs) to the QIP included Axis Capital Ltd, Citigroup Global Markets India Ltd and HSBC Securities and Capital Markets (India) Private Ltd.

In the fiscal 2020-21, the asset financing Non-banking finance company's profit after tax declined 0.58 per cent to Rs 2,487.26 crore, as against Rs 2,501.84 crore in FY 2019-2020.

It manages assets of over Rs 1,17,200 crores and has a customer base exceeding 21 lakh.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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