Shriram Transport Finance drops after RBI bans further share purchases by foreign investors

Shriram Transport Finance Company dropped 3.97% to Rs 935 at 10:50 IST on BSE after the central bank banned further purchases of company's shares by foreign investors after the foreign shareholding crossed threshold ban limit.

The Reserve Bank of India (RBI) issued notification yesterday, 20 October 2015.

Meanwhile, the BSE Sensex was up 111.26 points, or 0.41%, to 27,418.09.

On BSE, so far 20,008 shares were traded in the counter, compared with an average volume of 23,228 shares in the past one quarter.

The stock hit a high of Rs 963.20 and a low of Rs 911.80 so far during the day. The stock hit a record high of Rs 1,286.40 on 4 March 2015. The stock hit a 52-week low of Rs 761.50 on 7 May 2015.

The stock had outperformed the market over the past one month till 20 October 2015, rising 7.06% compared with 4.15% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 9.23% as against Sensex's 3.92% decline.

The large-cap company has an equity capital of Rs 226.88 crore. Face value per share is Rs 10.

The RBI has notified that no further purchase of shares of Shriram Transport Finance Company would be allowed through stock exchanges on behalf of foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) after the foreign shareholding through FIIs/RFPIs in the company has crossed threshold ban limit of its paid-up capital.

Shriram Transport Finance Company's net profit rose 4.8% to Rs 321.11 crore on 16.7% rise in total income to Rs 2353.34 crore in Q1 June 2015 over Q1 June 2014.

Shriram Transport Finance Company is the flagship company of the Shriram group which has significant presence in consumer finance, life insurance, general insurance, stock broking and distribution businesses. Established in 1979, Shriram Transport is today the largest asset financing NBFC (non-banking financial company) in the country and holistic finance provider for the commercial vehicle industry and seeks to partner small truck owners for every possible need related to their assets.

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