Shriram Transport Finance gains after announcing fund raising plans

Shriram Transport Finance Company gained 1.5% to Rs 1,175.45 at 10:00 IST on BSE after the company said that it is considering raising of funds through various options.

The announcement was made after market hours yesterday, 2 June 2016.

Meanwhile, the BSE Sensex was up 145.14 points, or 0.54%, to 26,988.28.

On BSE, so far 5,496 shares were traded in the counter, compared with an average volume of 50,070 shares in the past one quarter. The stock hit a high of Rs 1,180.50 and a low of Rs 1,166.40 so far during the day. The stock hit a 52-week high of Rs 1,219 on 30 May 2016. The stock hit a 52-week low of Rs 736.50 on 21 January 2016. The stock had outperformed the market over the past one month till 2 June 2016, rising 6.92% compared with Sensex's 5.53% gains. The scrip also outperformed the market in past one quarter, rising 33.59% as against Sensex's 10.73% gains.

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

Shriram Transport Finance Company said that it is considering raising of funds through various options of borrowings including by way of issue of secured redeemable non-convertible debentures (NCDs) on private placement basis. Based on the market conditions the meeting of Banking and Finance Committee will be held during the current month ending 30 June 2016 to consider and approve the terms of such borrowings.

Shriram Transport Finance Company's net profit fell 54.6% to Rs 143.92 crore on 26.2% rise in total income to Rs 2918.03 crore in Q4 March 2016 over Q4 March 2015.

Shriram Transport Finance Company is the largest asset financing NBFC. The company is a leader in organized financing of pre-owned trucks with strategic presence in 5-12 year old trucks.

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