The proposed right issues will increase CAR, debt-to-equity ratio and boost its lending business, fortify balance sheets to tackle contingencies and opportunities emerging from the covid-19 crisis.
Earlier the company said that it focused on capital preservation, balance sheet protection and controlling overheads. The Company has a healthy capital adequacy ratio, comfortable liquidity position and manageable gross and net stage 3 ratios.
STFC's AUM rose by 5.04 per cent in Q4 to Rs 109749.24 crore from Rs 104482.29 crore, a year ago. CRAR was at 21.99 per cent as compared to 20.27 per cent, a year ago.
This will be the first time in a decade STFC will tap the equity markets to raise funds. STFC last raised Rs 584 crore through a qualified institutional placement (QIP) in January 2010.
Shriram Capital (in which Piramal Enterprise is holding 20 % stake) holds 26.23 per cent stake in STFC. The other major shareholders include Fidelity (3.24 %), Sanlam (2.98 %). GOvernment Pension Fund Global (2.19 %), T.Rowe Price New Asia Fund (1.52) among others. Public and others hold 57.26 per cent in the company.