Shriram Transport Finance raises Rs 2,000 crore via QIP

Shriram Transport Finance Company. | Representative image

Shriram Transport Finance (STF) has raised around Rs 2,000 crore through its latest qualified institutions placement (QIP) issue that closed on June 11, the auto finance firm has said

"Securities Issuance Committee at its meeting held today i.e. June
12, 2021...approved the allotment of 13,986,000 Equity Shares of face value Rs.10 each to eligible qualified institutional buyers at the issue price of Rs.1,430/- per Equity Share (including a premium of Rs.1,420/- per Equity Share) at a discount of Rs.3.32 per Equity Share i.e. 0.23% of the floor price of Rs.1,433.32 per Equity Share, aggregating to Rs.1999,99,80,000/-, pursuant to the Issue," STF said in a regulatory filing on June 12.

Also read: Shriram Transport Finance approves funds raising via QIB, capital infusion by promoter

The paid-up equity share capital of the company—pursuant to the allotment of equity shares in the issue—has increased from Rs 253,06,15,130 to Rs 267,04,75,130 comprising 26,70,47,513 equity shares of face value of Rs 10 each. The firm said the list of allottees who have been allotted more than 5 percent of the equity shares would be filed shortly.

A QIP allows listed companies to raise capital without having to submit legal paperwork to market regulators. Through QIP a company can issue equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares to a qualified institutional buyer.

The board of directors has approved June 30 as the cut-off date for determining the eligibility of the members who can vote by remote e-voting at its upcoming extraordinary general meeting (EGM), the company said.

Earlier, the Securities Issuance Committee of the firm had approved holding an EGM on June 7 to seek shareholders' approval for preferential allotment of equity shares and warrants to promoter Shriram Capital. The firm is looking to raise another Rs 500 crore from its promoter firm in the meantime.

STF's shares closed at Rs 1,475.25 on June 11, up 5.10 points or 0.35 percent.