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STFC to raise Rs.600 cr through Preferential Allotment
STFC - 13 November, 2007
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Tuesday, the 13th November 2007, Mumbai - Shriram Transport Finance Company Limited (STFC), today announced that it will be raising Rs.600 cr through preferential allotment of equity shares and optionally convertible warrants.
The Committee of the Board which met today approved the proposed allotment of 68 lakh equity shares to Blue Ridge Limited Partnership and/or its affliates, 40 lakh equity shares to Tiger Global Management LLC and/or its affliates, both New York based Hedge Funds and 12 lakh equity shares to Kampani Finance Limited, a JM Finance group company, all at a price of Rs.300 per equity share.
The committee also approved the issue of 80 lakh warrants to Shriram Holdings (Madras) Private Limited (wherein Shriram promoters and TPG Newbridge have equity in the ratio of 51 : 49) at a subscription price of Rs.30/- for each warrant conferring an option to the holder to subscribe to one equity share per warrant at an exercise price of Rs.300/- per warrant.
The total investment in the company in the first round would be Rs.384 crores, which would go up by another Rs.216 crores if the option is exercised within 18 months by Shriram Holdings (Madras) Private Limited.
Extra Ordinary General Meeting of the company will be held on 12th, December 2007 to seek the Shareholder’s approval.
Commenting on the occasion, Mr.R. Sridhar, Managing Director, Shriram Transport Finance Company Limited, said, "We are bringing in New York based hedge funds and JM Finance group as investors alongwith the promoters in this preferential allotment and this infusion of equity will augment the tier 1 capital of the company and will help Shriram Transport in its ambitious growth plans for the next 3 to 5 years.
About Shriram Transport
Shriram Transport Finance Company Limited, incorporated in the year 1979, is the largest asset financing NBFC in the country with leadership position in the commercial vehicle financing business. The company has more than Rs.15000 crs. assets under management, network of more than 400 branches, more than 6500 employees and more than 600000 contracts. The company has equity participation from Citicorp, Axis Bank, reputed private equity funds Chrys Capital and TPG Newbridge.
For further queries, please contact:
Vinod K. Moorthy
TRC
Email: vinod.moorthy@ipan.com
R Sridhar
STFC Ltd
Email:sridhar@stfc.in |
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