Shriram Transport climbs on fixing rights issue price

Shriram Transport Finance Company rose 2.29% to Rs 713.50 after the company said its board has fixed the rights issue price at Rs 570 per equity share.

Last month, Shriram Transport Finance Company's board approved rights issue of equity shares for an amount aggregating up to Rs 1500 crore.

The company on Monday (6 July) said the rights issue price has been fixed at Rs 570 per equity share, while the entitlement ratio is 3 fully paid-up equity shares for every 26 equity share held by eligible shareholders as on the record date i.e. 10 July 2020.

On the technical front, the stock's RSI (relative strength index) stood at 61.133. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

The stock was trading in between its 50-day moving average (DMA) placed at Rs 657.61, with will act as a support in the near term and its 200-day moving average (DMA) placed at Rs 943.05, would act as a resistance in the upcoming trade.

The NBFC reported 70.1% slump in consolidated net profit to Rs 223.38 crore on 7.5% increase in total income to Rs 4,173.04 crore in Q4 March 2020 over Q4 March 2019.

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

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