Shriram Transport Finance raises Rs 584 cr via QIP

Shriram Transport Finance Company today said it has raised Rs 583.86 crore by selling over 1.1 crore shares, or around 5.20 per cent stake, to qualified institutional investors.

On January 28, the board of directors allotted 116.5 lakh shares of Rs 10 each to qualified institutional buyers (QIBs) for an aggregate sum of Rs 583.86 crore, Shriram Transport Fin Co said in a filing to the Bombay Stock Exchange.

The issue price of shares was at Rs 500.80 a piece. Final allocations were made to 45 global as well as domestic funds and insurers, which included 22 existing investors, it said.

"The net proceeds from the offering will be primarily utilised for accelerating the expansion of our core commercial vehicle financing business as also fresh investments in our proposed equipment financing and vehicle trading ventures," Shriram Transport Finance Co MD R Sridhar said.

Shriram Transport Finance Company is the flagship company of the Shriram group which has presence in consumer finance, life insurance, general Insurance, stock broking and distribution businesses.

"This is a significant milestone and bears testimony to the trust reposed in the long term outlook and performance of the company," STFC Chairman Arun Duggal said.

Shares of Shriram Transport Finance Co were trading at Rs 489.05, down 0.64 per cent in the afternoon trade on the BSE.