Shriram Transport Finance Rights Issue To Be Launched On 16 July; Shares Jump 6%

On Tuesday, Shriram Transport Finance Co Ltd in a stock exchange filing said that it will launch its rights issue on 16 July to raise Rs 1,500 crore. The issue will close on 30 July, it added.

Earlier on Monday, the financier for commercial vehicles had fixed a price of Rs 570 per share for its proposed rights issue, an 18 percent discount on 3 July's closing price.

Investors holding 26 shares as on the record date of 10 July, will be eligible for three shares under the rights offering. The full amount of the issue price of Rs 570 per rights equity share will be payable on application, it added.

"Promoter and Shriram Financial Ventures (Chennai) Private Limited, a member of the promoter group, have undertaken to fully subscribe to their rights entitlement and shall not renounce their rights, except to the extent of any renunciation inter-se between the promoter and other members of the promoter group," the filing said.

"In addition to the subscription to their respective rights entitlement, they have also reserved the right to subscribe to additional equity shares in the rights issue, including for any rights entitlements renounced in their favour or in favour of any entities controlled by them," it added.

Shares of Shriram Transport Finance Co surged over 6 percent on Wednesday to hit an intraday high of Rs 775.