STFC raises Rs.583.86 Crores through QIP
The duly authorized Committee of the Board of Directors of Shriram Transport Finance
CompanyLimited (STFC) informed the stock exchanges that at its meeting held on January
28, 2010, it hasallotted 116.58 lacs equity shares of the face value of Rs. 10 each
to Qualified Institutional Buyers(QIB) for an aggregate sum of Rs. 583.86 crores
resulting in a dilution of around 5.20 %.
The placement was successfully executed with strong investor interest amongst domestic
as wellas international investors, against the backdrop of volatile equity market
conditions. The placementof shares was effected at Rs. 500.80 per share representing
a tight discount of 2.91% to the last close of Rs. 515.80 and 0.41% to the closing
price on launch, which was Rs 502.85.
Final allocations were made to 45 marquee global as well as domestic funds and insurers,
which included 22 existing investors and the rest, new investors. This placement
will facilitate thediversification of STFC’s institutional shareholder base while
improving liquidity in the shares.
Mr. Arun Duggal, Chairman, said "This is a significant milestone for STFC
and bears testimony to the trust reposed in the long term outlook and performance
of the Company."
Mr. R Sridhar, Managing Director, said "The net proceeds from the offering
will be primarily utilized for accelerating the expansion of our core commercial
vehicle financing business as also fresh investments in our proposed equipment financing
and vehicle trading ventures, which are expected to drive our diversification into
the wider infrastructure domain and fee growth among other purposes." Citigroup
Global Markets India Private Limited, DSP Merrill Lynch Limited and IDFC-SSKI Limited
acted as the Joint Global Coordinators and Book Running Lead Managers for the placement.
About Shriram Transport Finance Company Limited.
Shriram Transport Finance Company Limited 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 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. It has PAN India presence
with 484 branch offices. Based at Mumbai, it manages assets over Rs 29,000 crores
and has a live customer base exceeding 7,00,000.
For Further information, please contact:
Mr. Sanjay K. MundraVice President
Shriram Transport Finance Company Ltd.
Wockhardt Towers,
3rd Floor, West Wing, G Block,
Bandra-Kurla Complex,
Bandra (East),
Mumbai - 400051.
Email:
smundra@stfc.in
Telephone: 022-40959595
